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AB-111 National Guard Assumption Program of Loans for Education.(2007-2008)

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AB111:v95#DOCUMENT

Amended  IN  Senate  June 20, 2007
Amended  IN  Senate  June 14, 2007
Amended  IN  Assembly  March 26, 2007
Amended  IN  Assembly  March 05, 2007

CALIFORNIA LEGISLATURE— 2007–2008 REGULAR SESSION

Assembly Bill
No. 111

Introduced  by  Assembly Member Blakeslee
 (Coauthor(s): Assembly Member Arambula, Beall, Cook, Galgiani, Horton, Krekorian, Portantino, Ruskin)
 (Coauthor(s): Senator Denham, Negrete McLeod, Wiggins, Wyland)

January 08, 2007

An act to amend Sections 69750, 69750.3, 69751.2, and 69751.5 of the Education Code, relating to student financial aid, and declaring the urgency thereof, to take effect immediately.


LEGISLATIVE COUNSEL'S DIGEST


AB 111, as amended, Blakeslee. National Guard Assumption Program of Loans for Education.
Existing law establishes, commencing with the 2004–05 fiscal year, and ending with the 2006–07 fiscal year, the National Guard Assumption Program of Loans for Education, under the administration of the Student Aid Commission, to provide an incentive for persons to enlist or reenlist in the National Guard, the State Military Reserve, or the Naval Militia. Existing law conditions eligibility for loan assumption on the applicant having received or being approved to receive a loan under specified loan programs in order to meet the costs associated with obtaining a degree or enrollment in a qualified vocational diploma program. Persons who otherwise qualify for participation in the program are eligible to receive up to $11,000 in loan assumption payments if the applicant is or was qualified for participation in the Federal Family Education Loan Program or any loan program approved by the commission for this purpose.
Existing law provides that, in any fiscal year in which the commission determines that funding is insufficient to fully support the program, the commission shall, to the extent feasible, grant applicants who are financially needy, as indicated by a household income and asset level that is at or below the maximum set for participants in the Cal Grant A program, and individuals who have been called to full-time active military duty, priority for participation in the program. Existing law makes the program inoperative on July 1, 2007, and repeals it on January 1, 2008.
This bill would change the date on which the program becomes inoperative to July 1, 2010, and would change the date on which the program is repealed to January 1, 2011, thereby extending the existence of the program by 3 years.
The bill would delete a condition for eligibility for loan assumption that the applicant be enrolled in an institution of higher education or a vocational diploma program that participates in the loan assumption program. The bill would provide that only applicants who receive or are approved to receive specified subsidized student loans in order to meet the costs associated with enrolling in or obtaining a degree or a certificate from an accredited institution of higher education or a state-approved institution of higher education, are eligible for loan assumption.
The bill would add the William D. Ford Federal Direct Loan Program and the Federal Perkins Loan Program to the list of loan programs for which the National Guard Assumption Program of Loans for Education would make loan assumption payments. The bill would delete the provision placing any loan program approved by the Student Loan Commission from being eligible for loan assumptive on the list of programs for which the National Guard Assumption Program of Loans for Education would make loan assumption payments.
The bill would delete the provision providing priority for applicants who are financially needy, as indicated by the household income and asset level of that individual, for participation in the program in a fiscal year when the commission determines that funding is insufficient to fully support the program.
The bill would declare that it is to take effect immediately as an urgency statute.
Vote: 2/3   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 69750 of the Education Code is amended to read:

69750.
 Commencing with the 2004–05 fiscal year, the National Guard Assumption Program of Loans for Education is established to provide an incentive for persons to enlist or reenlist in the National Guard, the State Military Reserve, or the Naval Militia within the meaning of Section 66025.6 who seek, or who have completed, degrees or certificates at institutions of higher education within this state if the applicant is or was qualified for participation in the Federal Family Education Loan Program (20 U.S.C. Sec. 1071 et seq.) or, the William D. Ford Federal Direct Loan Program (20 U.S.C. Sec. 1087a et seq.), or the Federal Perkins Loan Program (20 U.S.C. Sec. 1087aa et seq.).

SEC. 2.

 Section 69750.3 of the Education Code is amended to read:

69750.3.
 (a) A person who meets both of the following conditions is eligible to enter into an agreement for loan assumption, to be redeemed pursuant to Section 69750.5:
(1) The applicant agrees to enlist, or reenlist, in the National Guard, the State Military Reserve, or the Naval Militia.
(2) In order to meet the costs associated with enrolling in or obtaining a degree or a certificate from an accredited institution of higher education or a state-approved institution of higher education, the applicant has received, or is approved to receive, a subsidized loan under one or more of the following designated loan programs:
(A) The Federal Family Education Loan Program (20 U.S.C. Sec. 1071 et seq.).
(B) The William D. Ford Federal Direct Loan Program (20 U.S.C. Sec. 1087a et seq.).
(C) The Federal Perkins Loan Program (20 U.S.C. Sec. 1087aa et seq.).
(b) A person participating in the program pursuant to this article is not eligible to enter into more than one agreement under this article.

SEC. 3.

 Section 69751.2 of the Education Code is amended to read:

69751.2.
 In any fiscal year in which the commission determines that funding for this article is insufficient to fully support this program, the commission shall, to the extent feasible, grant priority for participation in the program to applicants who have been called to full-time active military duty.

SEC. 4.

 Section 69751.5 of the Education Code is amended to read:

69751.5.
 This article shall become inoperative on July 1, 2010, and, as of January 1, 2011, is repealed, unless a later enacted statute that is enacted before January 1, 2011, deletes or extends the date on which it becomes inoperative and is repealed.

SEC. 5.

 This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are:
In order to extend the operation of the National Guard Assumption Program of Loans for Education until July 1, 2010, it is necessary that this act take effect immediately.