BILL ANALYSIS Ó SENATE COMMITTEE ON VETERANS AFFAIRS Senator Jim Nielsen, Chair 2015 - 2016 Regular Bill No: AB 1401 Hearing Date: 6/23/15 ----------------------------------------------------------------- |Author: |Baker | |-----------+-----------------------------------------------------| |Version: |2/27/15 Introduced | ----------------------------------------------------------------- ----------------------------------------------------------------- |Urgency: |No |Fiscal: |Yes | ----------------------------------------------------------------- ----------------------------------------------------------------- |Consultant:|Wade Cooper Teasdale | | | | ----------------------------------------------------------------- Subject: Veterans: student financial aid. DESCRIPTION Summary: Requests the Office of the Adjutant General (OTAG) to provide specified assistance, regarding higher education, to members of the California National Guard (CNG), State Military Reserve (SMR), and Naval Militia, who do not have a baccalaureate degree. Existing law : Provides various benefits for veterans including the GI Bill, National Guard Education Assistance Award Program (NGEAAP), and other state and federal benefits. Prior law In effect until January 1, 2012: 1)Requested OTAG to, among other things, make copies of the enrollment fee waiver application of the Board of Governors of the California Community Colleges and the Free Application for Federal Student Aid (FAFSA) available to each member of the CNG, SMR, and Naval Militia not having a baccalaureate degree. 2)Requested OTAG to assist these persons in completing these forms, as needed. AB 1401 (Baker) Page 2 of ? This bill : 1)Requests OTAG to, among other things, make copies of the enrollment fee waiver application of the Board of Governors of the California Community Colleges and the Free Application for Federal Student Aid (FAFSA) available to each member of the CNG, SMR, and Naval Militia not having a baccalaureate degree. 2)Requests OTAG to assist these persons in completing these forms, as needed. 3)Requests that OTAG also make available additional information regarding the federal Post-9/11 GI Bill and the California National Guard Education Assistance Award Program, and contact information for veterans' educational assistance. BACKGROUND Higher Education Benefits: APLE-NG In 2003, the Legislature created the Assumption Program of Loans for Education program for CNG members (APLE-NG) via AB 547 (Liu). This program was sunsetted on January 1, 2012, but is presented here for historical context. Under APLE-NG, eligible service members received a repayment of their loans for study at a college or university, as follows: a. For one year of service, up to $2,000 of the student loan is assumed; b. For two years of service, up to $5,000 of the student loan is assumed; c. For three years of service, up to $8.000 of the student loan is assumed; and d. For four years of service, up to $11,000 of the student loan is assumed. In addition, AB 547 did the following: 1) Requested OTAG to: a. Make copies of the enrollment fee waiver application of the Board of Governors of the California Community Colleges AB 1401 (Baker) Page 3 of ? and the Free Application for Federal Student Aid (FAFSA) available to each member of the CNG, SMR, and Naval Militia who does not have a baccalaureate degree. b. Assist these persons in completing these forms, as needed. 2) Established protections for qualifying CNG members who are deployed to active service during their academic term including: a. An academic leave of absence for any academic session that the qualify member is unable to attend or complete because he or she is on active duty; and, b. The protection that the CNG member does not forfeit either any of the monetary value of the Cal Grant award or any of the periods of eligibility for that award... 3) Directed OTAG to submit to the Legislature on the effectiveness of the program, on or before July 1, 2006; and 4) Provided a sunset date of January 1, 2007, for the NG APLE and the protections. Because the original APLE-NG statute was scheduled to sunset on January 1, 2007, the Legislature enacted SB 1322 (Denham, 2004), which: 1)Extended APLE-NG until January 1, 2012. 2)Provided that APLE-NG would serve as an incentive for persons to enlist or reenlist. 3)Authorized persons who otherwise qualify for participation in the program and who are enrolled in or have completed a program of study in a vocational diploma program, to participate in the program. 4)Required the California Student Aid Commission (CSAC) to report annually to the Legislature on the total number of program participants, as well as the number of participants who receive a loan assumption benefit. Higher Education Benefits: CNG EAAP AB 1401 (Baker) Page 4 of ? The California National Guard Education Assistance Award Program (CNG EAAP) is a State-funded grant for members of the CNG or SMR (up to 1,000 or as many participants as the annual budget will allow). This program authorizes CSAC to make payments to eligible program participants. Participants can receive up to the amount of the Cal Grant A award for attending the University of California or the California State University, up to the Cal Grant B award for attending a community college, or up to the University of California Cal Grant A amount for attending a non-public institution. Graduates may receive an additional $500 for books and supplies. COMMENT Related Legislation 1)SB 1322 (Denham, Chapter 554, Statutes of 2004) (1) extends by five years, from January 1, 2007 until January 1, 2012, the sunset date for the provisions of AB 547 (2003), which established the APLE-National Guard program and provided other academic benefits, (2) expands the pool of beneficiaries for the provisions of this legislation, as specified, and (3) makes technical and clarifying changes, as specified. 2)AB 547 (Liu, Chapter 345, Statutes of 2003) establishes NG APLE - administered by CSAC - and awards qualifying members of the California Army National Guard (NG), the California Air NG, the State Military Reserves and the Naval Militia with an assumption of their educational loans, according to specified schedules. POSITIONS Sponsor: Author Support: AMVETS - Department of California California Association of County Veterans Service Officers California Community Colleges, Chancellor's Office Contra Costa, County of Military Officers Association of America - California Council of AB 1401 (Baker) Page 5 of ? Chapters Veterans of Foreign Wars - Department of California Oppose: None received -- END --