Washington, DC – This past week, Congressman Mark DeSaulnier (D, CA-11) announced commonsense legislation to protect low income students from being taxed on using their Pell Grants for non-tuition goods and services. He is joined in introducing the Pell Grant Flexibility Act (H.R. 5764) by his Republican colleagues Representatives Lee Zeldin (NY-1), Thomas MacArthur (NJ-3), and Peter King (NY-2) as well as 16 leading education organizations including The Institute for College Access and Success (TICAS) and the National Education Association (NEA).

Federal Pell Grants can be used to cover both tuition and non-tuition expenses. However, when students use these funds for non-tuition expenses their Pell Grant is taxed, while strictly tuition costs are exempt. Each year approximately eight million students receive Pell Grant funding. A majority of these recipients have family incomes under $40,000 per year, and typically borrow higher amounts of student loans to cover the costs associated with higher education.
“When it comes to college affordability, paying tuition is not the only cost that worries students and families. Expenses like textbooks, off-campus housing, transportation, and child care account for roughly 60 to 80 percent of total cost of a higher education. We must allow students to use every Pell dollar toward focusing on their earning their degree,” said Congressman DeSaulnier

“The rising cost of higher education is a crushing burden to many families, but access to Pell grants offer substantial assistance. The ability to use Pell Grants for expenses other than tuition and to have access to those funds on a tax-free basis is vital. NEA applauds Rep. DeSaulnier for introducing the Pell Grant Flexibility Act,” said NEA Director of Government Relations, Mary Kusler.
“Pell Grants should not be treated as taxable income regardless of which qualified education expense they are used to cover. By eliminating the inconsistent tax treatment of Pell Grants, this bill will help to increase fairness, simplify the tax code, and improve coordination between Pell Grants and the American Opportunity Tax Credit (AOTC),” said TICAS President, Lauren Asher.
The complete list of organizational support includes: American Association of Community Colleges (AACC), American Council on Education (ACE), Association of American Universities (AAU) , Association of Jesuit Colleges and Universities (AJCU), Association of Public and Land-grant Universities (APLU), Hispanic Association of Colleges & Universities (HACU), Institute for Higher Education Policy (IHEP), National Association of Independent Colleges and Universities (NAICU), National Association of Student Financial Aid Administrators (NASFAA), National College Access Network (NCAN), National Education Association (NEA), National Urban League, Service Employees International Union (SEIU), The Institute for College Assess and Success (TICAS), United Negro College Fund (UNCF), Young Invincibles.

San Ramon – Assemblywoman Catharine Baker (R-San Ramon) announced that Governor Brown has signed her bill, AB 2486, making it easier for consumers to find and check for a licensed contractor for construction projects.

Under current law, California consumers are required to use a licensed contractor for construction projects costing more than $500. When an unlicensed contractor is used, consumers risk suffering financial loss, costly lawsuits, and shoddy workmanship with little recourse. Regrettably, the Contractor’s State License Board website only allows consumers to search for contractors by name or license number. As a result, consumers cannot utilize the Board’s website to find a licensed contractor. Instead, they can only look up a contractor for whom they already have a name or license number.

AB 2486 fixes this problem and requires the Board to update its website to allow consumers to search for licensed contractors by zip code. This important feature will help make it easier for individuals to find contractors working in their community and prevent consumers from falling victim to the underground economy and unlicensed contractor scams.

“Although it only makes a small change to the Contractors State License Board website, AB 2486 will have a significant impact on improving consumer protection and access to important information,” said Assemblywoman Baker. “At the four Senior Fraud Seminars we’ve hosted throughout the District, constituents made it loud and clear that they want easier ways to search for and screen contractors in order to avoid and detect scams from unlicensed contractors. Making government serve more efficiently is what I’m about, and I’m so pleased that this bill has been signed.”

When unlicensed contractors are used, they provide increased risk to consumers, undercut lawful employers, and contribute to the state’s unsafe and unlawful underground economy. The Franchise Tax Board estimates that the underground economy costs the state $10 billion annually in uncollected tax revenue. AB 2486 will help combat the use of unlicensed contractors in the underground economy by making it easier for consumers to get information about licensed contractors in their area.

AB 2486 received the support of Associated Builders and Contractors of California, California Landscape Contractors Association, Sacramento Regional Builders Exchange, the California Pool and Spa Association, and the Contractors State License Board.

Prior to being signed by the Governor, AB 2486 received unanimous, bipartisan support in both the Senate and Assembly.

Baker represents the 16^th Assembly District, which includes the communities of Alamo, Danville, Dublin, Lafayette, Livermore, Moraga, Orinda, Pleasanton, San Ramon, and Walnut Creek.