Senator Grayson's proposal to modify California's public postsecondary education system would require state universities to cover diagnostic assessment costs for students with disabilities who receive financial aid or qualify for institutional health assistance. The measure revises existing Education Code provisions regarding disability assessments while establishing new coverage requirements that take effect July 1, 2027.

The bill expands the scope of diagnostic assessments to include both individual and group evaluations, whether conducted internally or by external providers. These assessments determine functional capabilities, educational needs, and specific disabilities that may require academic accommodations. Under the measure, the California State University system must—and the University of California is requested to—fund these evaluations for eligible students, with costs reimbursed annually by the state based on documented expenses.

Implementation would occur through the Department of General Services, which would oversee the reimbursement process for participating institutions. Universities must publicly post information about assessment coverage on their websites while maintaining the option to refer students to outside providers for evaluation services. The measure preserves existing funding categories for disability support services, including fixed administrative costs, variable service expenses, and one-time equipment purchases.