(a) In order to receive a grant under the program, a student shall either be a recipient of a Cal Grant B award or a recipient of a Cal Grant A award who was eligible for a Cal Grant B award, and shall perform at least 100 hours per quarter or 150 hours per semester of community or volunteer service, as appropriate. The community or volunteer service shall be performed through organizations meeting the requirements of Section 69438.7. The organizations shall report the hours of service performed by participating students to the commission in a timely manner.

(b) A participating student is eligible to receive a grant under the program for a maximum of 8 semesters or 12 quarters. Once a student has met the minimum service requirement, the student is eligible for an award of up to two thousand two hundred fifty dollars ($2,250) per semester or one thousand five hundred dollars ($1,500) per quarter. The amount of a grant made to an individual participating student shall be calculated as follows:

(1) The student’s award amount per term shall not exceed 50 percent of the student’s annual unmet need if the student is enrolled in a semester-based system, or 33.33 percent of the student’s annual unmet need if the student is enrolled in a quarter-based system.

(2) If a student is eligible to receive a grant under the program, the minimum amount awarded in a semester or quarter shall be four hundred fifty dollars ($450).

(c) A grant awarded under the program shall not offset or replace any other source of grant aid, including, but not necessarily limited to, institutional aid and scholarships.

(d) No more than 1,667 students who are eligible through meeting all of the requirements of Section 69438.5 shall simultaneously participate in the program. When award slots are available, grants under the program shall be awarded to eligible students on a first-come-first-served basis, with priority established in order of the date and time of the student’s submission of a completed California Dream Act application pursuant to subdivision (a) of Section 69438.5.

(e) (1) Commencing with the 2021-22 fiscal year, upon order of the Director of Finance, any unexpended or unencumbered funds appropriated for purposes of the program, as of June 30 of each fiscal year, shall be transferred to the University of California and the California State University to support the California DREAM Loan Program established in Article 23 (commencing with Section 70030) of Chapter 2.

(2) The Department of Finance shall allocate the funds transferred pursuant to paragraph (1) to the University of California and the California State University proportionally to the share of students awarded a California DREAM Loan at each segment, using data for the most recent fiscal year in which that data is available.

(3) Funds transferred to support the California DREAM Loan Program shall be used to support activities in fiscal years subsequent to the initial fiscal year for which the appropriation was provided.

(4) The Department of Finance may adjust the amount transferred following the close of a fiscal year to account for changes in available resources.

(f) Of the funds appropriated in the Budget Act of 2019-20 for the purposes of the program, up to one million five hundred thousand dollars ($1,500,000) shall be available on a one-time basis to the commission to support the costs to administer the program for the 2019-20 fiscal year.

(Amended by Stats. 2022, Ch. 54, Sec. 12. (AB 183) Effective June 30, 2022.)