BILL ANALYSIS �
SB 384
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Date of Hearing: June 18, 2014
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
SB 384 (Gaines and DeSaulnier) - As Amended: June 2, 2014
Policy Committee: Higher
EducationVote:11-0
Urgency: Yes State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill extends, until July 1, 2016, the deadline for
execution of agreements by those eligible to participate in the
California Memorial Scholarship Program (CMSP). Specifically,
this bill:
1)Requires the California Victim Compensation and Government
Claims Board (VCGCB) to conduct outreach, as specified, and to
identify and confirm those eligible to participate in the CMSP
due to their being a dependent of a California resident killed
in the September 11, 2001 terrorist attacks.
2)Requires the board to notify in writing, by July 1, 2015,
those identified as eligible for scholarships under the
program.
3)Requires the Scholarshare Investment Board (SIB) to service
the scholarships for program participants.
FISCAL EFFECT
1)Special fund costs for the scholarships, which are up to
$5,000 per recipient, would depend on the number of
participants, but given the likely limited pool of eligible
persons, would not exceed $50,000 to $75,000 annually over a
few years. (See Comment #2)
2)Administrative costs to the VCGCB and the SIB would be minor
and absorbable.
COMMENTS
SB 384
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1)The CMSP was established by AB 1759 (Wesson)/Statutes of 2002,
to provide scholarships covering up to $5,000 of postsecondary
education expenses for dependents of California victims who
died during the terrorist attacks on September 11, 2001. The
CMSP is funded through the sale of 9/11 memorial license
plates previously authorized by the Legislature. Dependents,
or the parents or guardians of minor dependents, were to be
notified by July 1, 2003 of their eligibility for the CMSP.
Eligible dependents interested in receiving scholarship funds
had to contact the SIB and execute a participation agreement
by June 30, 2005.
2)Auditor's Report . According to the State Auditor's April 2013
report regarding special interest license plate programs, the
VCGCB failed to identify and notify all individuals eligible
for the CMSP by the July 1, 2003 deadline. The report found
that most of the outreach that the VCGCB performed predated
the actual establishment of the CMSP and did not mention the
program by name. Due to the lack of timely notification,
eligible participants were left with less than three months to
apply for the scholarship instead of the two years as required
under AB 1759. Finally, the report found that only 13 of the
43 individuals that the VCGCB identified as eligible for the
scholarship program and the three other individuals who were
not screened for eligibility, ultimately participated.
3)Purpose . According to the authors, because the VCGCB did not
meet their statutory deadline for notification or outreach to
eligible participants, they want to re-open the CMSP and,
"give eligible students who may not have had the time or
notification the first time around, the ability to participate
in a scholarship that was put in place specifically to assist
them."
Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081