BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                   SB 815|
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                                 THIRD READING


          Bill No:  SB 815
          Author:   Cogdill (R)
          Amended:  6/2/09
          Vote:     21

           
           SENATE EDUCATION COMMITTEE  :  8-0, 4/29/09
          AYES:  Romero, Huff, Hancock, Liu, Maldonado, Padilla,  
            Simitian, Wyland
          NO VOTE RECORDED:  Alquist

           SENATE APPROPRIATIONS COMMITTEE  :  12-0, 5/28/09
          AYES:  Kehoe, Cox, Corbett, Denham, DeSaulnier, Hancock,  
            Leno, Oropeza, Runner, Walters, Wyland, Yee
          NO VOTE RECORDED:  Wolk


           SUBJECT  :    Student financial aid:  National Guard  
          education assistance

           SOURCE  :     Author


           DIGEST  :    This bill creates the National Guard Education  
          Assistance Award Program to provide financial support for  
          qualifying active members of the California National Guard,  
          the State Military Reserve, or the Naval Militia attending  
          a qualifying postsecondary institution.  Participants would  
          apply to the Adjutant General, who would certify  
          eligibility to the California Student Aid Commission  
          (CSAC), who would issue the awards.  Qualifying applicants  
          would receive funding equal to the amount of a Cal Grant A  
          or, if attending a community college, a Cal Grant B award.   
                                                           CONTINUED





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          Grantees would agree to use the award to obtain a  
          certificate, degree, or diploma that he or she does not  
          hold at the time of application, as specified.  Sunsets  
          1/1/20.

           ANALYSIS  :    CSAC administers a variety of student  
          financial aid grant and loan programs including several  
          different Cal Grant programs.  The Cal Grant programs  
          provide awards to students who meet both specific income  
          and academic eligibility criteria.  These programs include:  
           

          1. Cal Grant A & B "entitlement program" for graduating  
             high school seniors.  About 173,000 new and continuing  
             awards are projected for 2008-09.

          2. Cal Grant A and B "competitive program" for students who  
             begin college more than a year after graduating from  
             high school.  Statute limits the number of new awards in  
             any one year to not more than 22,500.  Because of this,  
             approximately only 18 percent of qualified applicants  
             receive awards.  Approximately 57,000 new and renewal  
             grants were awarded in the current year.  The Governor's  
             2008-09 proposed budget includes no funding for this  
             program.

          3. California Community Colleges Transfer Entitlement  
             Program for students transferring from a California  
             Community College to a four-year institution.   
             Approximately 8,000 new and continuing transfer  
             entitlement awards are projected for 2008-09.

          4. Cal Grant C for students attending occupational or  
             vocational programs of less than two-years duration.   
             Approximately 7,900 new awards are authorized for  
             2008-09.

          Members of the California National Guard, as well as most  
          other Californians, may participate in these programs  
          should they meet the eligibility requirements.  

          In addition, there are a variety of other federal,  
          campus-based, and private financial aid opportunities with  
          varying eligibility requirements.  







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          This bill creates the California National Guard Education  
          Assistance Award Program to provide awards to qualifying  
          members of the California National Guard, the State  
          Military Reserve or the Naval Militia.  Specifically, this  
          bill:

          1. Requires that a "qualifying member" meet all of the  
             following:

             A.    Be a California resident.

             B.    Be an active member of the California National  
                Guard, the State Military Reserve or the Naval  
                Militia and have served for at least two years.

             C.    Be an accepted or registered student at a  
                qualifying postsecondary education institution.

             D.    Agree to:

                (1)      Use the award to obtain a certificate,  
                   degree or diploma that he or she does not hold at  
                   the time the person applies for the award.

                (2)      Enroll in at least three academic units per  
                   semester (or its equivalent).

              E.    Is not eligible for, or has no remaining, student  
                financial aid or educational benefits pursuant to the  
                federal Montgomery GI Bill or any other federal  
                educational benefits program for veterans.

              F.    Has submitted the Free Application for Federal  
                Student Aid to the United States Department of  
                Education.

              G.    Has demonstrated financial need pursuant to the  
                criteria adopted pursuant to Section 69432.9.

          2. Requires applicants to submit applications to the  
             Adjutant General for review.  The Adjutant General would  
             be required to certify eligibility of the qualifying  
             member to CSAC.







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          3. Requires CSAC to issue the awards and to provide  
             specified information to the Adjutant General and notify  
             recipients of their selection for an award.

          4. Specifies the qualifying applicants would receive  
             funding equal to the amount of a Cal Grant A award, or  
             if attending a community college, a Cal Grant B award.   
             It caps the award for private school recipients to the  
             amount received by UC students.

          5. Provides that the awards may be renewed for each new  
             academic year for a maximum of five years full-time  
             equivalent enrollment providing that the qualifying  
             member maintains their military eligibility and a 2.0  
             cumulative grade point average.

          6. Prohibits qualifying members from receiving both a  
             California National Guard Education award and a Cal  
             Grant for the same academic year.

          7. Requires the Student Aid Commission:

             A.    In consultation with the military department to  
                adopt emergency rules and regulations to administer  
                the program.

             B.    To report annually to the Legislature regarding  
                program participation, as specified.

          8. Provides that costs incurred by CSAC to issue and  
             process awards and be reimbursed through an interagency  
             agreement from appropriations in the annual Budget Act  
             to the Commission.  This bill also authorizes CSAC to  
             enter into contracts to improve the processing and  
             distribution of awards through the use of electronic  
             networks and unified databases.

          9. Requires the Legislative Analyst to report to the  
             Legislature by January 1, 2015, on the efficacy of the  
             program established by this bill.

          10.Specifies that the implementation is to be contingent  
             upon the receipt of federal funding for the purposes of  







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             the bill.

          11.Sunsets 1/1/20.

           Prior legislation  .  This bill is substantially similar to  
          SB 1752 (Wyland), 2007-08 Session, which was held in the  
          Senate Appropriations Committee. 

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

          According to the Senate Appropriations Committee:

                          Fiscal Impact (in thousands)

           Major Provisions                2009-10     2010-11    
           2011-12   Fund  
          Awards              $1,800    $3,600$3,600General
          CSAC           $400      $140      $140      General
          Adjutant General                   $100      $100 General


           SUPPORT  :   (Verified  6/2/09)

          Adjunct General, Major General William H. Wade II 
          Assistant Adjunct General, Brigadier General Mary J. Kight
          Secretary of Education, Glen W. Thomas
          National Guard Association of California
          CA Labor and Workforce Development Agency
          Los Angeles County
          Los Angeles County Board of Supervisors
          Veterans of Foreign Wars
          County Veterans Service Officers
          Vietnam Veterans of America, California State Council
          American Veterans
          Sergeants Major Association of CA


          DLW:mw:n  6/2/09   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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