SB67 - Student financial aid: Cal Grants: Middle Class Scholarship Program: eligibility: dependents of members of the armed services stationed outside of California.

Senate Bill No. 67 CHAPTER 648 An act to amend Sections 69411, 69433.9, 69436, 69514, and 70022 of the Education Code, relating to student financial aid. [ Approved by Governor October 11, 2025. Filed with Secretary of State October 11, 2025. ] LEGISLATIVE COUNSEL'S DIGEST SB 67, Seyarto. Student financial aid: Cal Grants: Middle Class Scholarship Program: eligibility: dependents of members of the armed services stationed outside of California. Existing law, the Cal Grant Program, establishes the Cal Grant A Entitlement Awards, the Cal Grant B Entitlement Awards, the California Community College Expanded Entitlement Awards, the California Community College Transfer Entitlement Awards, the Competitive Cal Grant A and B Awards, the Cal Grant C Awards, and the Cal Grant T Awards under the administration of the Student Aid Commission. Existing law, the Cal Grant Reform Act, revises and recasts the provisions establishing and governing the existing Cal Grant Program into a new Cal Grant Program. Existing law specifies that the act becomes operative only if General Fund moneys over the multiyear forecasts beginning in the 2024–25 fiscal year are available to support ongoing augmentations and actions, and if funding is provided in the annual Budget Act to implement the act. Under either Cal Grant Program that is operative, existing law establishes eligibility requirements for awards under the program for participating students attending qualifying institutions, including, among others, California residency requirements, as provided. Existing law establishes the Middle Class Scholarship Program (MCSP) under the administration of the commission. Existing law makes an undergraduate student eligible for a scholarship award under the MCSP if the student is enrolled at the University of California or the California State University, or enrolled in upper division coursework in a community college baccalaureate program, and meets certain eligibility requirements, including, among others, that the applicant meets the eligibility requirements for a Cal Grant. This bill would extend Cal Grant and MCSP eligibility to a student who was not a resident of California at the time of high school graduation or its equivalent but meets all other applicable eligibility requirements and is a dependent natural or adopted child, stepchild, or spouse of a member of the Armed Forces of the United States stationed outside of California on active duty, if the member of the Armed Forces of the United States otherwise maintains California as their state of legal residence. The bill also would make conforming changes. This bill would incorporate additional changes to Section 70022 of the Education Code proposed by AB 148 and SB 148 to be operative only if this bill and either SB 148 or AB 148 are enacted, and this bill is enacted last. Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill Text The people of the State of California do enact as follows: SECTION 1. Section 69411 of the Education Code is amended to read: 69411. (a) To be eligible for a Cal Grant Reform Act Program award under this chapter, a student shall be all of the following: (1) A citizen of the United States, or an eligible noncitizen, as defined for purposes of financial aid programs under Title IV of the federal Higher Education Act of 1965, as amended from time to time (20 U.S.C. Sec. 1070 et seq.). (2) Either of the following: (A) A resident of California at the time of high school graduation or its equivalent. (B) A student who has residence, pursuant to Article 5 (commencing with Section 68060) of Chapter 1 of Part 41, in the state for more than three years immediately preceding July 1 of the award year. (3) Not in default on any student loan within the meaning of Section 69507.5. (b) Notwithstanding paragraphs (1) and (2) of subdivision (a), a student who is exempt from paying nonresident tuition pursuant to Section 68130.5 shall be eligible for an award pursuant to this chapter if they meet all other eligibility requirements. (c) Notwithstanding paragraph (2) of subdivision (a), a student who is a dependent natural or adopted child, stepchild, or spouse of a member of the Armed Forces of the United States stationed outside of California on active duty, if the member of the Armed Forces of the United States otherwise maintains California as their state of legal residence, shall be eligible for an award pursuant to this chapter if the student meets all other eligibility requirements. SEC. 2. Section 69433.9 of the Education Code is amended to read: 69433.9. (a) To be eligible to receive a Cal Grant award pursuant to this chapter, a student shall be all of the following: (1) A citizen of the United States, or an eligible noncitizen, as defined for purposes of financial aid programs under Title IV of the federal Higher Education Act of 1965 (20 U.S.C. Sec. 1070 et seq., as from time to time amended). (2) Not incarcerated. (3) Not in default on any student loan within the meaning of Section 69507.5. (4) (A) For purposes of Article 2 (commencing with Section 69434), Article 3 (commencing with Section 69435), and Article 4 (commencing with Section 69436), except as provided in subdivision (d) of Section 69436, at the time of high school graduation or its equivalent, be a resident of California. (B) A student who does not meet the requirements for a high school diploma or its equivalent in the academic year immediately preceding the award year, but who meets the requirements for a high school diploma or its equivalent by December 31 of the academic year immediately following the date of application, satisfies any requirement for obtaining high school graduation or its equivalent for the purposes of this chapter as of the first day of the academic term immediately following the term in which the requirements for the high school diploma or its equivalent are met. (C) No student shall receive an award for a term that begins before satisfying any requirement for obtaining high school graduation or its equivalent. (b) Notwithstanding subdivision (a), a student shall be eligible to receive a Cal Grant award pursuant to this chapter if the student satisfies the requirements of paragraphs (1) to (3), inclusive, of subdivision (a) and the student is a dependent natural or adopted child, stepchild, or spouse of a member of the Armed Forces of the United States stationed outside of California on active duty, if the member of the Armed Forces of the United States otherwise maintains California as their state of legal residence. SEC. 3. Section 69436 of the Education Code is amended to read: 69436. (a) A student who was not awarded a Cal Grant A or B award pursuant to Article 2 (commencing with Section 69434) or Article 3 (commencing with Section 69435) at the time of their high school graduation but, at the time of transfer from a California community college to a qualifying baccalaureate program or upon matriculation into the upper division coursework of a community college baccalaureate program, described in Article 3 (commencing with Section 78040) of Chapter 1 of Part 48 of Division 7, meets all of the criteria set forth in subdivision (b), shall be entitled to a Cal Grant A or B award. (b) Any California resident transferring from a California community college to a qualifying institution that offers a baccalaureate degree or who matriculates into the upper division coursework of a community college baccalaureate program, described in Article 3 (commencing with Section 78040) of Chapter 1 of Part 48 of Division 7, is entitled to receive, and the commission, or a qualifying institution pursuant to Article 8 (commencing with Section 69450), shall award, a Cal Grant A or B award depending on the eligibility determined pursuant to subdivision (c), if all of the following criteria are met: (1) A complete official financial aid application has been submitted or postmarked pursuant to Section 69432.9, no later than the March 2 of the year immediately preceding the award year. (2) The student demonstrates financial need pursuant to Section 69433. (3) The student has earned a community college grade point average of at least 2.4 on a 4.0 scale and is eligible to transfer to a qualifying institution that offers a baccalaureate degree. (4) The student’s household has an income and asset level not exceeding the limits set forth in Section 69432.7. (5) The student is pursuing a baccalaureate degree that is offered by a qualifying institution. (6) The student is enrolled at least part time. (7) The student meets the general Cal Grant eligibility requirements set forth in Article 1 (commencing with Section 69430). (8) The student will not be 28 years of age or older by December 31 of the award year. (9) The student graduated from a California high school or its equivalent during or after the 2000–01 academic year. (10) (A) Except as provided for in subparagraph (B), the student attended a California community college in the academic year immediately preceding the academic year for which the award will be used. (B) A student otherwise eligible to receive an award pursuant to this section, who attended a California community college in the 2011–12 academic year, may use the award for the 2012–13 and 2013–14 academic years. (c) The amount and type of the award pursuant to this article shall be determined as follows: (1) For applicants with income and assets at or under the Cal Grant A limits, the award amount shall be the amount established pursuant to Article 2 (commencing with Section 69434). (2) For applicants with income and assets at or under the Cal Grant B limits, the award amount shall be the amount established pursuant to Article 3 (commencing with Section 69435). (d) (1) A student meeting the requirements of paragraph (9) of subdivision (b) by means of high school graduation, rather than its equivalent, shall be required to have graduated from a California high school, unless that California resident graduated from a high school outside of California due solely to orders received from a branch of the United States Armed Forces by that student or by that student’s parent or guardian that required that student to be outside of California at the time of high school graduation. (2) For the purposes of this article, all of the following are exempt from the requirements of paragraph (4) of subdivision (a) of Section 69433.9 and paragraph (9) of subdivision (b) of this section: (A) A student for whom a claim under this article was paid before December 1, 2005. (B) A student for whom a claim under this article for the 2004–05 award year or the 2005–06 award year was or is paid on or after December 1, 2005, but no later than October 15, 2006. (C) Commencing with the 2017–18 academic year, a student who did not graduate from high school or its equivalent and was a California resident, as determined pursuant to Article 5 (commencing with Section 68060) of Chapter 1 of Part 41, on their 18th birthday. (3) (A) The commission, or a qualifying institution pursuant to Article 8 (commencing with Section 69450), shall make preliminary awards to all applicants currently eligible for an award under this article. At the time an applicant receives a preliminary award, the commission, or a qualifying institution pursuant to Article 8 (commencing with Section 69450), shall require that applicant to affirm, in writing, under penalty of perjury, that they meet the requirements set forth in paragraph (4) of subdivision (a) of Section 69433.9, paragraph (9) of subdivision (b) of this section, and paragraph (1) of this subdivision. The commission, or a qualifying institution pursuant to Article 8 (commencing with Section 69450), shall notify each person who receives a preliminary award under this paragraph that their award is subject to an audit pursuant to subparagraph (B). (B) The commission shall select, at random, a minimum of 10 percent of the new and renewal awards made under subparagraph (A), and shall require, before the disbursement of Cal Grant funds to the affected postsecondary institution, that the institution verify that the recipient meets the requirements of paragraph (4) of subdivision (a) of Section 69433.9, paragraph (9) of subdivision (b) of this section, and paragraph (1) of this subdivision. An award that is audited under this paragraph and found to be valid shall not be subject to a subsequent audit. (C) Pursuant to Section 69517.5, the commission shall seek repayment of any and all funds found to be improperly disbursed under this article. (D) On or before November 1 of each year, the commission shall submit a report to the Legislature and the Governor, including, but not necessarily limited to, both of the following: (i) The number of awards made under this article in the preceding 12 months. (ii) The number of new and renewal awards selected, in the preceding 12 months, for verification under subparagraph (B), and the results of that verification with respect to students at the University of California, at the California State University, at independent nonprofit institutions, and at independent for-profit institutions. SEC. 4. Section 69514 of the Education Code is amended to read: 69514. The commission shall do all of the following: (a) Report, on or before April 1 of each year, statistical data examining the impact and effectiveness of state-funded programs. The commission shall use common criteria in determining the impact of these programs, and shall have the authority to obtain any data from postsecondary educational institutions necessary for the reports. To the extent practicable, this report shall specifically note the number and the demographic characteristics of the students who qualify for a Cal Grant award based on obtaining high school graduation or its equivalent pursuant to subparagraph (B) of paragraph (4) of subdivision (a) of Section 69433.9. (b) Collect and disseminate data concerning the financial resources and needs of students and potential students, and the scope and impact of existing state, federal, and institutional student aid programs. (c) Report, on or before April 1 of each year, the aggregate financial need of individuals seeking access to postsecondary education and the degree to which current student aid programs meet this legitimate financial need. (d) Develop and report annually the distribution of funds and awards among income groups, ethnic groups, grade point average levels, and postsecondary education segments. (e) Prepare and disseminate information regarding the criteria used in distributing available student aid funds. (f) Be authorized to expend funds for the purpose of disseminating information about all institutional, state, and federal student aid programs to potential applicants. This distribution of information shall primarily focus on potential applicants with the greatest financial need. (g) In the event that the [Text truncated for display. Full text available on Congress.gov.]