In California, students are supposed to file FAFSA, CADAA, or an opt-out form. The opt-out form is basically that the student (age 18+ or emancipated minor) or parent (for other students) states that they choose not to (does not require any specific reason), or the counselor says that the student is unable to (presumably those not eligible like international students).
Apparently, the intended and main effect was to make more students from low income families aware that college financial aid was available, resulting in increased college attendance rates: https://www.ppic.org/publication/college-enrollment-under-californias-new-financial-aid-application-policy/