CA AB505

Requires institutions participating in the Cal Grant Program to implement a financial aid book advance program beginning in the 2020-21 academic year that provides a line of credit for book and educational material purchases to students with credit balances in Cal Grant B, Cal Grant C, or federal Pell Grant awards.

Line of credit must be available on or before the seventh day of the academic semester or term and until one day before the census date, with the credit amount equal to the lesser of the presumed award balance or an amount generally needed for books and educational materials as determined by the institution.

Students may use the line of credit at any bookstore owned or operated by the institution, with the institution later deducting actual amounts spent from the student's financial aid award and reimbursing the bookstore from those deducted funds.

Exempts institutions that lack a bookstore or that disburse all financial aid award moneys to students on or before the seventh day of the academic semester or term.

Allows students to voluntarily opt out of the program and does not require students to use the line of credit or purchase books from institutional bookstores.