topleft CSBA.org >  Services >  Governance Technology > 

Legal Resources | Education Code |  EC  69995  

Governor's Scholarship Program   

arrow Previous bar Next arrow

(a) It is the intent of the Legislature in enacting this article to encourage high school pupils to study hard and master the California academic content standards adopted by the State Board of Education and to excel in mathematics and the sciences.

(b) The Scholarshare Investment Board, known hereafter as "the board," unless otherwise specified, shall administer the programs authorized by this article, including the adoption of rules and regulations as provided by subdivision (d) of Section 69981, and in so doing shall cooperate with the State Department of Education, the Treasurer's office, the Controller, the college board, private test publishing companies, and other entities necessary to ensure the accurate and timely identification and reporting of award recipients, granting of awards, and administration of these programs. The State Department of Education shall ensure that the contract with the test publisher selected pursuant to Section 60642 reflects the reporting requirements of this article and that the publisher meets those requirements.

(c) The definitions in Section 69980 apply to this article.

(d) To be eligible for an award pursuant to the programs authorized by this article, a pupil shall meet all of the following eligibility criteria:

(1) The pupil took the achievement test authorized by Section 60640 in grade 9, 10, or 11.

(2) The pupil was enrolled at a California public school for at least 12 consecutive months immediately preceding, or was in attendance for at least 110 days of the school year in which the test is administered and at least 110 days of the school year immediately preceding, the administration of the achievement test specified in paragraph (1), as evidenced by his or her school records obtained pursuant to administration of the program authorized by this article.

(3) The pupil took both of the following:

(A) The nationally normed reading and mathematics portions of the achievement test, as specified by the State Board of Education and authorized by Section 60640.

(B) The English/language arts and mathematics portions of the achievement test authorized by Section 60640 that are augmented and aligned, pursuant to Section 60643, with the California academic content standards, unless otherwise exempted by action of the State Board of Education.

(e) Awards made pursuant to this article shall be an entitlement to pupils identified as qualifying for an award pursuant to this article. The State Department of Education shall annually provide the board with an estimate of the number of pupils with qualifying scores by October 15. Within 30 days of receipt of the estimate, the board shall deposit a single amount equal to the sum of the amounts of the awards earned by qualifying pupils, as specified in subdivision (f), into a single account separate and apart from all participant accounts within the Golden State Scholarshare Trust in the names of those pupils.

(f) (1) (A) For the 2003-04 fiscal year, only awards earned by pupils enrolled in the 12th grade during the 2003-04 academic year shall be deposited as described in subdivision (e). This paragraph applies to awards for recipients who qualify for awards pursuant to this article if the awards were not deposited by the board before July 1, 2003.

(B) Notwithstanding subparagraph (A) or any other provision of law, for the 2003-04 fiscal year only, the transfer of funds for the purpose of making deposits as described in subdivision (e) may be delayed for one additional year or until the pupil is enrolled in an institution of higher education if authorized in legislation enacted during the 2003-04 Regular Session.

(2) For the 2004-05 fiscal year, only awards earned by pupils enrolled in the 12th grade during the 2004-05 academic year shall be deposited as described in subdivision (e). If a pupil also earned an award in a prior year, the board shall calculate an amount equal to the award earned, plus an amount equal to the interest that would have been earned had the recipient's award funds been annually deposited on October 15 of the recipient's junior year of high school enrollment. This paragraph applies only to awards earned by recipients who qualify for awards pursuant to this article if the awards were not deposited by the board before July 1, 2003.

(3) For the 2005-06 fiscal year, and each year thereafter, awards earned by pupils enrolled in the 12th grade during the 2005-06 academic year and each respective academic year shall be deposited as described in subdivision (e). If a pupil also earned an award in a prior year, the board shall calculate an amount equal to the award earned, plus an amount equal to the interest that would have been earned had the recipient's award funds been annually deposited on October 15 of the recipient's sophomore or junior years of high school enrollment, or both sophomore and junior years of high school enrollment. This paragraph applies only to recipients who qualify for awards pursuant to this article if the awards were not deposited by the board before July 1, 2003.

(g) Scholarship assets may not be commingled for investment purposes with participant accounts. Notwithstanding Section 69991, all assets of the scholarship account, while part of the Golden State Scholarshare Trust, are owned by the state until used to pay the qualified higher education expenses of the beneficiary.

(h) The entity contracted for the assessment authorized by Section 60640 shall annually, on or before January 15, provide the board a digital report that contains a final list of pupils identified as qualifying for an award pursuant to this article. To ensure that this digital report is accurate and is prepared on a timely basis, all corrections to and revisions of the data that are used to prepare the digital report shall be submitted to the State Department of Education on or before November 15 of the preceding year.

(i) Deposits made to the scholarship account shall be invested according to the guidelines established by the board pursuant to the requirements of state and federal law. The deposits shall be invested through a guaranteed funding agreement with an interest rate to be declared annually by the investment manager, or through another investment determined by the board to be equally or more secure. For purposes of this section, a guaranteed funding agreement is an approved investment vehicle for state-owned scholarship funds.

(j) This article does not prevent any pupil from seeking private or other funding sources to supplement the amount of any funds awarded pursuant to this article.

(k) Award recipients shall be informed that the programs authorized by this article do not guarantee in any way that higher education expenses will be equal to projections and estimates provided by the board, nor that the claimant will be guaranteed any of the following:

(1) Admission to an institution of higher education.

(2) If admitted, a determination that the award recipient is a resident for tuition purposes by the institution of higher education.

(3) Continued attendance at the institution of higher education following admission.

(4) Graduation from the institution of higher education.

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

(l) Notwithstanding any other provision of state law, any funds awarded pursuant to this article shall augment and not supplant student financial aid from other public sources, inclusive of calculating eligibility for student financial aid.

(m) Notwithstanding any other provision of law, the awards and earnings claimed by a recipient pursuant to this article shall be exempt from state income tax liability.

(n) To the extent allowed under federal law, any funds awarded pursuant to this article may not be considered in the federal needs analysis for student financial aid, as they are an asset of the state until used for the payment of qualified higher education expenses

(Amended by Stats. 2003, Ch. 4 (SBX1), Sec. 10.)

Reference:

Education Code 60640

Education Code 60642

Education Code 60643

Education Code 69980

Education Code 69981

Education Code 69991