BILL ANALYSIS �
AB 1781
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 1781 (Linder)
As Amended June 11, 2014
Majority vote
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|ASSEMBLY: |75-0 |(April 24, |SENATE: |35-0 |(July 3, 2014) |
| | |2014) | | | |
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Original Committee Reference: HIGHER ED.
SUMMARY : Permits a person who receives a California National
Guard (CNG) Education Assistance Award Program (EAAP) grant to
use the grant in summer session if the person submits a letter
from his or her unit commander that states that the summer
session will not adversely impact the person's attendance at
mandatory military training, as specified.
The Senate amendments :
1)Clarify how a person who receives the CNG EAAP can use his or
her award dollars in order to enroll and attend a summer
session course at a postsecondary institution of higher
learning in the state.
2)Add legislative intent language that the Legislature intends
to build upon the success of the CNG EAAP by providing
student-soldiers more flexibility in achieving their academic
goals.
EXISTING LAW :
1)Establishes the CNG EAAP to enhance retention within the CNG
and sets specific conditions of eligibility for participation
in the program, including, but not limited to the following:
a) the person is a resident of California, as specified in
current law; b) the person is an active member of, and has
served two years in, the CNG, the State Military Reserve
(SMR), or the Naval Militia; c) the person has been accepted
or registered at, enrolled in, a qualifying institution, as
specified in current law; d) the person has submitted the Free
Application for Federal Student Aid (FAFSA) to the United
States Department of Education; and, e) each person applying
for the CNG EAAP shall submit an application for an award to
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the Adjutant General;
2)Specifies that the California Student Aid Commission (CSAC) is
responsible for issuing the awards upon receipt of a
certificate from the Adjutant General verifying that the
applicant meets the eligibility requirements and requires CSAC
to report annually to the Legislature regarding the EAAP
participants, as specified;
3)Specifies that qualifying members shall not receive both a CNG
EAAP and any Cal Grant award in the same academic year and
specifies the amount of an award issued shall be as follows:
a) for a recipient attending the University of California (UC)
or the California State University (CSU), the maximum amount
of the Cal Grant A award, pursuant to current law, as adjusted
in the annual Budget Act; b) for a recipient attending a
community college, the maximum amount of the Cal Grant B
award, pursuant to current law, as adjusted in the annual
Budget Act; and, c) for a recipient attending a nonpublic
institution, the maximum amount of a Cal Grant A award for a
student attending the UC pursuant to current law, as adjusted
in the annual Budget Act;
4)Specifies the following: a) an award used for graduate
studies shall not exceed the maximum amount of a Cal Grant A
award, as specified, plus $500 for books and supplies; b) the
award amount shall not exceed the difference between the
recipient's cost of attendance and any other student financial
aid and educational benefits pursuant to the federal
Montgomery GI Bill (38 United States Code Section 3001 et
seq.) or any other federal educational benefits program for
veterans; and c) CNG Education Assistance awards may be
renewed for each new academic year, for a maximum of the
greater of either: i) four years of full-time equivalent
enrollment or ii) the duration for which the qualifying member
would otherwise be eligible pursuant to the Cal Grant Program,
if the Adjutant General certifies the qualifying member's
eligibility and the qualifying member maintains at least a 2.0
cumulative grade point average; and,
5)Tasks the Legislative Analyst's Office (LAO), on or before
January 1, 2016, to prepare and submit to the Legislature a
report on the CNG EAAP, including recommendations for
modifying or extending the CNG EAAP; and, specifies that the
CNG EAAP, as of July 1, 2019, shall become inoperative, and on
January 1, 2020, is repealed unless a later enacted statute,
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that becomes operative on or before January 1, 2020, deletes
or extends the dates on which it becomes inoperative and is
repealed (Education Code Section 69999.16 et seq.).
FISCAL EFFECT : According to the Senate Appropriations
Committee, pursuant to Senate Rule 28.8, negligible state costs.
COMMENTS : The CNG EAAP, which went into effect on January 1,
2010, is a state-funded grant for up to 1,000 service members in
the CNG, SMR, or the Naval Militia, or as many participants as
the annual budget will allow. CNG EAAP authorizes the CSAC to
make payments to eligible program participants. Participants
can receive up to the amount of the Cal Grant A award for
attending the UC or the CSU, up to the Cal Grant B award for
attending a community college, or up to the UC Cal Grant A
amount for attending a non-public institution. CNG EAAP
graduate school students may receive an additional $500 for
books and supplies.
Application process. Initial applicants must submit an EAAP
Initial Application, the Statement of Understanding, and FAFSA
prior to the application deadline dates indicated below. For
initial applicants, the priority application period starts on
January 15 (or the next business day) and ends on the priority
deadline date of April 30. The application process will
continue to remain open after April 30 on a first-come,
first-serve basis until January 14, or until all awards have
been exhausted. Renewal participants must complete the EAAP
Renewal Application and the Renewal Statement of Understanding.
Renewal paperwork is available from January 15 (or the next
business day) through the deadline date of June 1. Failure to
renew will result in withdrawal from the CNG EAAP.
Award dollars. The award amounts for recipients of the CNG EAAP
for the 2012-13 and the 2013-14 Academic Year (AY) are:
1)Up to $1,473 at the community college (per Cal Grant B);
2)Up to $12,192 at the UC or a non-public institution (per Cal
Grant A); and,
3)Up to $5,472 at the CSU (per Cal Grant A).
Need for the bill. The author contends that this bill would
help fulfill the mission of California's postsecondary
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institutions, to reduce costs on students, help alleviate the
risk of debt and, ultimately expedite the time that it takes to
graduate. According to the author, this measure is an easy and
cost neutral way to support our state's soldiers in their
pursuit of academic achievement. The CNG students will not be
allocated any more money than they are now, instead they will
simply be able to extend whatever EAAP money they currently
receive to summer school sessions, if they chose to.
How many? According to the California Military Department,
since the enactment of the CNG EAAP, to date, the program has
not exceeded 1,000 awards in one academic year. To note, thus
far in the 2013-14 AY, there are 345 participants. The chart
below shows the number of participants in the CNG EAAP over the
course of four years:
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| AY |Number of CNG EAAP Participants |
|--------------------------------+--------------------------------|
|2009-10 |243 |
|--------------------------------+--------------------------------|
|2010-11 |450 |
|--------------------------------+--------------------------------|
|2011-12 |322 |
|--------------------------------+--------------------------------|
|2012-13 |292* |
| | |
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*For the 2012-13 AY, 156 previously qualifying institutions
became ineligible because of a change to the definition of a
qualifying institution for the Cal Grant program. Due to this
change, 59 new applicants who had submitted completed
applications had to be turned away.
Award dollars? According to the California Military Department,
in the 2013-14 AY, $2,445,535 has been budgeted for CNG EAAP
awards. To date, the CNG EAAP has paid out $1,532,485 in awards
for the 2013-14 AY. To note, the California Military Department
is projected to use all the funds for this AY. The chart below
shows the dollar amount that has been awarded to eligible
participants over the course of four years:
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| AY | Distributed Award Dollars |
|--------------------------------+--------------------------------|
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|2009-10 |$795,759 |
|--------------------------------+--------------------------------|
|2010-11 |$2,472,246 |
|--------------------------------+--------------------------------|
|2011-12 |$2,418,392 |
|--------------------------------+--------------------------------|
|2012-13 |$1,988,534* |
| | |
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*For the 2012-13 AY, 156 previously qualifying institutions
became ineligible because of a change to the definition of a
qualifying institution for the Cal Grant program. Due to this
change, 59 new applicants who had submitted completed
applications had to be turned away.
Analysis Prepared by : Jeanice Warden / HIGHER ED. / (916)
319-3960
FN: 0004246