AB 1035 ties California College Promise funding to a certification from the chancellor and spells out who may receive state-funded fee waivers at community colleges. The bill lets certified colleges use designated funding to waive some or all statutory fees for first‑time and returning students enrolled full time who submit a FAFSA or California Dream Act application, excludes students who already hold a postsecondary degree or certificate, and limits the waiver to defined time windows.
The measure also defines key terms (academic year, full‑time status with a DSPS exception, returning student), creates exceptions for students called to active military duty and for students who matriculate into community college baccalaureate upper‑division courses, and empowers the chancellor’s office to require annual reporting and to condition future allocations on timely compliance. Those mechanics shift both access and administrative responsibilities onto colleges, the chancellor’s office, and financial aid offices that verify eligibility and track waiver usage.
At a Glance
What It Does
Requires community colleges certified by the chancellor under Section 76396.2 to use designated California College Promise funds to waive some or all fees for eligible first‑time and returning full‑time students who file a FAFSA or California Dream Act application, subject to time limits and exclusions. It defines full‑time status, pauses eligibility for students on qualifying military duty, and authorizes reporting and funding conditionality by the chancellor’s office.
Who It Affects
California community colleges and districts that want or receive Promise funds, financial aid offices that must verify FAFSA/Cal Dream Act filings and prior credentials, students enrolling full time (including DSPS‑certified reduced‑unit full‑time students), community college baccalaureate upper‑division enrollees, and the Chancellor’s Office which oversees certification and compliance.
Why It Matters
The bill operationalizes how Promise dollars translate into direct fee relief and who gets it, creating both access incentives and new administrative compliance duties. Colleges that secure certification can change fee‑collection practices and must track eligibility windows and reporting to preserve future funding.
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What This Bill Actually Does
AB 1035 conditions receipt of California College Promise funding on certification by the Chancellor’s Office under the standards already referenced in Section 76396.2. Once certified, a college may apply the allocated funds to waive ‘‘some or all’’ statutory fees for two categories of students: those enrolling in community college for the first time and those who return after at least one semester away, provided the students are enrolled full time and have submitted either a Free Application for Federal Student Aid (FAFSA) or a California Dream Act application.
The bill expressly bars students who already possess a postsecondary degree or certificate from receiving the waiver.
The waiver is time‑limited. For eligible students, fee relief may cover the summer term immediately preceding the fall term and the two following semesters or three consecutive quarters that make up that academic year, and is available for only two academic years under the program.
Importantly, the waiver applies only to fees and not to any tuition charged under Section 76140. Colleges may choose to waive ‘‘some or all’’ fees in any eligible term, but only when students maintain full‑time status for that term.AB 1035 carves out several practical exceptions.
The Chancellor’s Office cannot count periods when a student withdraws because they were called to qualifying active military duty toward the two‑year limit; such students may resume participation without losing eligibility. High school pupils who later enroll after graduation are treated as first‑time community college students.
Students who matriculate into upper‑division coursework in a community college baccalaureate program may receive an additional two academic years of fee waivers for those upper‑division fees. The bill sets a concrete definition of ‘‘full time’’ as 12 or more semester units, while permitting a qualified disabled student services staffer to certify a student taking fewer than 12 units as full time.On oversight, the bill directs the Chancellor’s Office to evaluate and report on the use of Promise funds for fee waivers and gives the office authority to require annual reporting from colleges that receive funds.
Future allocations may be withheld from colleges that fail to provide required information or demonstrate compliance, making reporting both the mechanism for transparency and a trigger for funding eligibility.
The Five Things You Need to Know
Certification prerequisite: A community college must be certified by the Chancellor’s Office under Section 76396.2 to receive and use California College Promise funds for fee waivers.
Eligibility filter: Only first‑time or returning students who enroll full time and submit a FAFSA or California Dream Act application qualify; students with an existing postsecondary degree or certificate are excluded.
Time limit: Fee waivers are available for up to two academic years (defined as the summer before fall plus the two semesters or three quarters that follow) and apply only to terms in which the student maintains full‑time status.
Full‑time and DSPS exception: ‘‘Full time’’ is 12+ semester units (or equivalent); a student enrolled in fewer than 12 units may be certified as full time by qualified disabled student services staff at the college.
Reporting and conditional funding: The Chancellor’s Office must report on waiver use (bill references a July 1, 2024 report) and may require annual reports from colleges; future year funding can be withheld for failure to report or demonstrate compliance.
Section-by-Section Breakdown
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Funding tied to chancellor certification
The bill starts by making receipt of Promise funding contingent on certification by the Chancellor’s Office under the criteria set in Section 76396.2. Practically, that means colleges must meet administrative or programmatic conditions (as defined elsewhere) before they can allocate these specific funds to fee waivers, creating a gatekeeping role for the chancellor and an incentive for colleges to comply with the certification standards.
Core eligibility, exclusions, and scope of waiver
This subdivision authorizes certified colleges to waive ‘‘some or all’’ fees for first‑time and returning students who enroll full time and file a FAFSA or California Dream Act application, but it excludes students who already hold a degree or certificate and excludes any student charged tuition under Section 76140. It also limits waivers to the summer term and the semesters/quarters during which the student maintains full‑time status and caps total participation under the waiver to two academic years.
Military, high school dual‑enrollment, and baccalaureate exceptions
The bill protects students called to qualifying active military duty by allowing them to pause participation without losing eligibility and by excluding that period from the two‑year limit. High school pupils who took community college courses under specified statutes are treated as first‑time students only after they enroll following high school graduation. Students who advance into upper‑division coursework of a community college baccalaureate program may receive an additional two academic years of fee waivers specifically for those upper‑division fees.
Definitions: academic year, Armed Forces, full time, returning student
The bill defines ‘‘academic year’’ as the summer before fall plus two consecutive semesters or three quarters, clarifies which military components count as the Armed Forces, sets a baseline full‑time threshold at 12 semester units (with a DSPS staffer able to certify reduced‑unit students as full time), and defines a returning student as someone who has been away for at least one semester. These definitions shape who can count terms toward the two‑year waiver limit and who qualifies each term.
Legislative intent about program goals
A short statement of intent directs colleges to use Promise funding to advance goals already in Section 76396.1. While not operational, the clause signals legislative priorities and provides the basis for the Chancellor’s Office to assess whether colleges’ use of funds aligns with those objectives.
Reporting, evaluation, and conditional distribution of funds
The Chancellor’s Office must submit an evaluation report (the bill references a July 1, 2024 deadline) assessing whether waiver funding met the program’s goals and may require annual reports from colleges about their use of funds. The Chancellor’s Office can withhold next‑year allocations from colleges that fail to submit required reports or demonstrate compliance, making reporting both an accountability tool and a precondition for continued funding.
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Explore Education in Codify Search →Who Benefits and Who Bears the Cost
Every bill creates winners and losers. Here's who stands to gain and who bears the cost.
Who Benefits
- First‑time community college students without prior postsecondary credentials: They can receive state‑funded fee relief for up to two academic years if they enroll full time and file a FAFSA or California Dream Act application.
- Returning students who re‑enroll full time after a semester‑long break: The measure restores eligibility for fee waivers for those returning students, supporting reenrollment and potentially improving retention.
- Students called to qualifying active military duty: These students can pause and later resume waiver participation without the pause counting against their two‑year eligibility window.
- Students with disabilities certified by DSPS staff: The DSPS certification allows some reduced‑unit students to be treated as full time, making them eligible for fee waivers without taking 12 units.
- Community colleges that achieve chancellor certification and meet reporting requirements: Those colleges gain direct access to Promise funds earmarked for fee waivers and a clearer pathway to reduce fee barriers for targeted cohorts.
Who Bears the Cost
- Community college districts and campuses: They must administer fee waivers, verify FAFSA/Cal Dream Act filings and prior credentials, track academic‑year limits and military pauses, and potentially absorb administrative costs if state allocations don’t cover the full cost of waived fees.
- Disabled student services programs (DSPS): Staff bear the added responsibility and liability of certifying reduced‑unit students as full time, creating workload and documentation obligations.
- Chancellor’s Office: It must perform certification, collect and evaluate reports, and enforce conditional funding, which increases oversight workload and requires data systems and verification processes.
- State budget (targeted funding pool): The fiscal exposure of offering multi‑year waivers and extra years for baccalaureate upper‑division students concentrates cost pressure on the designated Promise funding stream, potentially crowding out other uses if demand exceeds appropriation.
- Institutions offering community college baccalaureate programs: They must track an additional two academic years of upper‑division fee waivers and reconcile that with program budgets and fee schedules.
Key Issues
The Core Tension
The central dilemma is between concentrating limited state dollars to maximize access for targeted full‑time students (and protecting military service members) versus keeping the rules simple and equitable for all potential enrollees; tighter eligibility and reporting improve accountability and curb improper use, but they increase administrative burden and can create uneven access depending on colleges’ capacity to certify, verify, and report.
AB 1035 advances targeted fee relief while layering in administrative safeguards, but those same safeguards create operational friction. Requiring FAFSA or California Dream Act submissions focuses benefits on students who complete federal/state aid forms, which screens for financial need and documentation status but may exclude eligible low‑income students who do not file or who are ineligible for either application.
The DSPS full‑time certification is humane in intent but invites variation in how colleges apply the discretion and raises audit risk if colleges adopt inconsistent standards.
The bill also leaves open practical questions about verification and cross‑institution data: how will colleges confirm that an applicant previously earned a degree or certificate elsewhere, and what documentation suffices? The reference to a July 1, 2024 report predates the bill’s introduction, creating an administrative inconsistency that the Chancellor’s Office will need to reconcile.
Finally, conditioning future funding on timely reporting strengthens accountability but risks creating a cliff for colleges with limited reporting capacity — especially smaller districts or those with underresourced financial aid offices — which could paradoxically reduce student access if funding is withheld midstream.
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