BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1129
                                                                  Page  1

          Date of Hearing:   May 4, 2011

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

              AB 1129 (Portantino) - As Introduced:  February 18, 2011 

          Policy Committee:                              Insurance Vote:12 
          - 0

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:              

           SUMMARY  

          This bill authorizes the Director of the Employment Development 
          Department (EDD) to share information with Educational Credit 
          Management Corporation (ECMC), the U.S. Department of 
          Education's student loan guarantor in California. 

           FISCAL EFFECT  

          There are no significant costs associated with this legislation. 


           COMMENTS  

           Purpose  . In 2010, the U.S. Department of Education terminated 
          the Student Aid Commission's guaranty agreement and transferred 
          the student loan portfolio to the Educational Credit Management 
          Corporation (ECMC).  ECMC has established a California location 
          and currently has an operating agreement with the Commission to 
          provide services and support to the Commission's operations and 
          administration of the Cal Grant Program, as well as other state 
          and federal financial aid programs administered by the 
          Commission.

          This bill allows ECMC access to the same EDD data used by EdFund 
          (the Commission's 501(c)(3) auxiliary that previously 
          administered the state's student loan guaranty program). The EDD 
          data allows the student loan guarantor to find and contact 
          borrowers approaching delinquency or default.  


           Analysis Prepared by  :    Julie Salley-Gray / APPR. / (916) 








                                                                  AB 1129
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          319-2081