Existing law, the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program, establishes the Cal Grant A and B Entitlement awards, the California Community College Transfer Cal Grant Entitlement awards, the Competitive Cal Grant A and B awards, the Cal Grant C awards, and the Cal Grant T awards under the administration of the Student Aid Commission, and establishes eligibility requirements for awards under these programs for participating students attending qualifying institutions.

Under the California Community College Transfer Cal Grant Entitlement Program, a student who transfers from a California community college to a qualifying institution that offers a baccalaureate degree and who was not awarded a Cal Grant A or B Entitlement award, receives a Cal Grant A or B award if, at the time of the transfer, the student meets specified requirements, among which is a requirement that the student not be 28 years of age or older by December 31 of the award year.

This bill would provide that the requirement that a student not be 28 years or older by December 31 of the award year, as described above, would not apply to a current or former member of the Armed Forces of the United States, as defined, who was seeking a Cal Grant A or B award under this provision, unless he or she is a former member who received a dishonorable or bad conduct discharge. The bill would prohibit a qualifying institution from accepting award funds under the California Community College Transfer Cal Grant Entitlement Program and Title 38 of the United States Code in the same award year for a current or former member of the Armed Forces of the United States who is 28 years of age or older.

Existing law, the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program, establishes the Cal Grant A and B Entitlement awards, the California Community College Transfer Cal Grant Entitlement awards, the Competitive Cal Grant A and B awards, the Cal Grant C awards, and the Cal Grant T awards under the administration of the Student Aid Commission, and establishes eligibility requirements for awards under these programs for participating students attending qualifying institutions.

Under the California Community College Transfer Cal Grant Entitlement Program, a student who transfers from a California community college to a qualifying institution that offers a baccalaureate degree and who was not awarded a Cal Grant A or B Entitlement award, receives a Cal Grant A or B award if, at the time of the transfer, the student meets specified requirements, among which is a requirement that the student not be 28 years of age or older by December 31 of the award year.

This bill would provide that the requirement that a student not be 28 years or older by December 31 of the award year, as described above, would not apply to a current or former member of the Armed Forces of the United States, as defined, who was seeking a Cal Grant A or B award under this provision, unless he or she is a former member who received a dishonorable or bad conduct discharge. The bill would prohibit a qualifying institution from accepting award funds under the California Community College Transfer Cal Grant Entitlement Program and Title 38 of the United States Code in the same award year for a current or former member of the Armed Forces of the United States who is 28 years of age or older.

Existing law, the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program, establishes the Cal Grant A and B Entitlement awards, the California Community College Transfer Cal Grant Entitlement awards, the Competitive Cal Grant A and B awards, the Cal Grant C awards, and the Cal Grant T awards under the administration of the Student Aid Commission, and establishes eligibility requirements for awards under these programs for participating students attending qualifying institutions.

Under the California Community College Transfer Cal Grant Entitlement Program, a student who transfers from a California community college to a qualifying institution that offers a baccalaureate degree and who was not awarded a Cal Grant A or B Entitlement award, receives a Cal Grant A or B award if, at the time of the transfer, the student meets specified requirements, among which is a requirement that the student not be 28 years of age or older by December 31 of the award year.

This bill would provide that the requirement that a student not be 28 years or older by December 31 of the award year, as described above, would not apply to a current or former member of the Armed Forces of the United States, as defined, who was seeking a Cal Grant A or B award under this provision, unless he or she is a former member who received a dishonorable or bad conduct discharge.

The bill would also make nonsubstantive and conforming changes to these provisions.

Existing law, the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program, establishes the Cal Grant A and B Entitlement awards, the California Community College Transfer Cal Grant Entitlement awards, the Competitive Cal Grant A and B awards, the Cal Grant C awards, and the Cal Grant T awards under the administration of the Student Aid Commission, and establishes eligibility requirements for awards under these programs for participating students attending qualifying institutions.

Under the California Community College Transfer Cal Grant Entitlement Program, a student who transfers from a California community college to a qualifying institution that offers a baccalaureate degree and who was not awarded a Cal Grant A or B Entitlement award, receives a Cal Grant A or B award if, at the time of the transfer, the student meets specified requirements, among which is a requirement that the student not be 28 years of age or older by December 31 of the award year.

This bill would provide that the requirement that a student not be 28 years or older by December 31 of the award year, as described above, would not apply to a former member of the Armed Forces of the United States, as defined, who was seeking a Cal Grant A or B award under this provision, unless he or she received a dishonorable or bad conduct discharge.

The bill would also make nonsubstantive and conforming changes to these provisions.

GOVERNOR'S VETO

GV Bill Id:AB 1361

Author:(Burke)

As Enrolled Ver:September 11, 2015

2/3 vote

SUMMARY: Exempts a current or former member of the Armed Forces of the United States, unless the individual received a dishonorable discharge, from the age limitations of the California Community College (CCC) Transfer Cal Grant Entitlement Program. Requires an institution to ensure that it does not accept award funds under both this section and United States Code Title 38 in the same award year for a current or former member of the Armed Forces of the United States who is 28 years of age or older.

EXISTING LAW: Establishes the Cal Grant program, administered by the California Student Aid Commission (CSAC), to provide tuition and access cost assistance to eligible students attending qualified institutions. The CCC Transfer Entitlement Awards provides Cal Grant A and B awards to every student who graduated from a California high school after June 30, 2000, was a California resident at the time of high school graduation, transferred to a qualifying baccalaureate-degree granting institution from a CCC during the award year, was under the age of 28 at the time of the transfer, and had a minimum California Community College grade point average (GPA) of 2.4. Maximum award amounts for California State University (CSU) and University of California (UC) are established in the annual Budget Act and have traditionally covered all systemwide tuition and fees. The maximum tuition award for Cal Grant A and B for students attending private for-profit colleges is $4,000 (commencing 2013-14), and for students attending non-profit or Western Association of Schools and Colleges (WASC)-accredited for-profit institutions is $8,056 (commencing 2015-16).

FISCAL EFFECT: According to the Assembly Appropriations Committee, likely minor ongoing General Fund costs for additional Cal Grants. Because GI Bill benefits are more generous that Cal Grants, which only cover tuition costs (plus a stipend under Cal Grant B), veterans eligible for both benefit would be more likely to use the former. Examples where this bill might apply would be a transferring veteran who elects to use their Cal Grant to obtain their bachelor's degree and then uses their GI Bill benefits for graduate school, or a veteran who depletes their GI Bill benefits at a private institution, then attends and completes lower division work at a community college, and finally uses their Cal Grant to get their bachelor's degree.

COMMENTS: According to the author, the age eligibility requirement presents a barrier for veterans who are attending college later in life. According to The Million Records Project by the Student Veterans of America, nationwide 85% of veteran students are older than 24 years of age, 47% of veterans students are supporting a family, and 46% of veterans students are 25 years of age or older when they first enroll in college. This bill assists veterans by removing the age eligibility requirement for current or former members of the Armed Forces of the United States for the CCC Transfer Entitlement Program.

GOVERNOR'S VETO MESSAGE:

This bill authorizes a current or former member of the United States Armed Forces to receive a California Community College Transfer Cal Grant entitlement award, even if the student is over 28 years of age unless the student received a dishonorable discharge.

While the bill is well intentioned, our California veterans are provided with many different educational benefits including federal Montgomery GI benefits and eligibility to pay California residence fees for both themselves and their dependents at the University of California, the California State University and California Community Colleges. I am not comfortable creating new General Fund costs outside of the budget process, particularly given the Cal Grant augmentations already included in this year's budget.

Analysis Prepared by: Laura Metune / HIGHER ED. / (916) 319-3960 FN: 0002476

 THIRD READING  

Bill No: AB 1361

Author: Burke (D)

Amended: 5/20/15 in Assembly

Vote: 21

SENATE EDUCATION COMMITTEE: 8-0, 6/24/15

AYES: Liu, Block, Hancock, Leyva, Mendoza, Monning, Pan, Vidak

NO VOTE RECORDED: Runner

SENATE APPROPRIATIONS COMMITTEE: 7-0, 8/27/15

AYES: Lara, Bates, Beall, Hill, Leyva, Mendoza, Nielsen

ASSEMBLY FLOOR: 80-0, 6/1/15 - See last page for vote

SUBJECT: Student financial aid: Cal Grant Program: veterans

SOURCE: Author

DIGEST: This bill exempts a current or former member of the Armed Forces of the United States, unless the individual received a dishonorable discharge, from the age limitations of the California Community College (CCC) Transfer Cal Grant Entitlement Program.

ANALYSIS:

Existing law:

1. Establishes the Cal Grant program, administered by the California Student Aid Commission (CSAC), to provide tuition and access cost assistance to eligible students attending qualified institutions. The CCC Transfer Entitlement Awards provide Cal Grant A and B awards to every student who graduated from a California high school after June 30, 2000, was a California resident at the time of high school graduation, transferred to a qualifying baccalaureate-degree granting institution from a CCC during the award year, was under the age of 28 at the time of the transfer, and had a minimum California Community College grade point average (GPA) of 2.4. (Education Code § 69432)

2. Provides maximum award amounts for California State University (CSU) and University of California (UC) are established in the annual Budget Act and have traditionally covered all system wide tuition and fees. The maximum tuition award for Cal Grant A and B for students attending private for-profit colleges is $4,000 (commencing 2013-14), and for students attending non-profit or Western Association of Schools and Colleges (WASC)-accredited for-profit institutions is $8,056 (commencing 2015-16). (EC § 69432)

This bill:

1. Exempts a current or former member of the Armed forces of the United States, unless the individual received a dishonorable discharge, from the age limitations of the California Community College (CCC) Transfer Cal Grant Entitlement Program.

2. Requires an institution to ensure that it does not accept award funds under both this section and United States Code Title 38 in the same award year for a current or former member of the Armed Forces of the United States who is 28 years of age or older.

COMMENTS

1. Need for the bill. Current law requires a student to be under the age of 28 years old in order to be eligible for the California Community College Transfer Entitlement (Transfer Entitlement). According to the author, this age eligibility requirement presents a barrier for veterans who as a result of their time in the service, attend college later in life, tend to be older and are more likely to support a family while enrolled in school. The California Community College Chancellor’s Office reports that approximately 27,000 of veterans attending California Community Colleges (CCC) are over the age of 30. This bill seeks to allow veterans greater access to higher education by removing the age requirement in order to qualify for the Transfer Entitlement Award.

2. The Community College Transfer Entitlement Program. The Transfer Entitlement award was structured to provide the same guarantee of Cal Grant eligibility to California students who start community college and transfer to a four year college or university some years later, as the Cal Grant Entitlement program provides high school students entering directly into four year college or university.

3. The Transfer Entitlement award provides for full fees at CCC, California State University (CSU) and the University of California (UC), as well as tuition support at private California colleges and universities. For veterans 28 years or older this bill would provide a new education benefit that otherwise would not have been available. Particularly for veteran students who have exhausted GI bill eligibility.

4. Other tuition benefits for veterans. Veterans may access various education benefits through the federal government. The most common among them is the federal Montgomery GI Bill, which provides active-duty service members and veterans a monthly tax-free benefit to be used for tuition, books, fees, and living expenses while earning an undergraduate or graduate degree, or attending trade school. The GI bill could provide veteran students up to $20,000 (approximately) in education benefits for the 2015-16 academic year.

To note, the federal government is the last payer if the state offers an equivalent tuition benefit to veterans. To avoid supplanting federal dollars, this bill specifies that a veteran cannot use both sources within the same academic year. A student would need to choose when to use either award in order to maximize the expanded benefit provided by provisions in this bill.

Prior Legislation

AB 303 (Calderon, 2014) would have entitled an otherwise eligible veteran to a Cal Grant A Entitlement Award or a Cal Grant B Entitlement Award. AB 303 was pulled from the Assembly Higher Education committee at the request of the chair.

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

According to the Senate Appropriations Committee, unknown, potentially significant costs depending on the number of students that opt to postpone the use of their GI benefits in order to receive a Cal Grant under the CCC Transfer Cal Grant Entitlement Program. Because benefits under the GI bill are greater than provided through the state’s student financial aid program, it is unlikely that many students will choose to access this benefit.

SUPPORT: (Verified 8/27/15)

California School Employees Association

Community College League of California

AMVETS-Department of California

American Legion Department of California

California Association of County Veteran Service Officers

California State Commanders Veterans Council

Vietnam Veterans of America-California State Council

OPPOSITION: (Verified 8/27/15)

None received

ASSEMBLY FLOOR: 80-0, 6/1/15

AYES: Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Perea, Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Atkins

Prepared by: Olgalilia Ramirez / ED. / (916) 651-4105

8/31/15 10:14:19

**** END ****

SENATE COMMITTEE ON APPROPRIATIONS

Senator Ricardo Lara, Chair

2015 - 2016 Regular Session

AB 1361 (Burke) - Student financial aid: Cal Grant Program: veterans

This bill meets the criteria for referral to the Suspense File.

Bill Summary:

This bill exempts current and former members of the Armed Forces of the United States, as specified, from the age cap to qualify for the CCC Transfer Cal Grant Entitlement Program, unless the member has received a dishonorable or bad conduct discharge.

Fiscal Impact:

• Unknown, potentially significant costs depending on the number of students that opt to postpone the use of their GI benefits in order to receive a Cal Grant under the CCC Transfer Cal Grant Entitlement Program. Because benefits under the GI bill are greater than provided through the state’s student financial aid program, it is unlikely that many students will choose to access this benefit. See staff comments.

Background:

Existing law establishes the Cal Grant program, administered by the California Student Aid Commission (CSAC), to provide tuition and access cost assistance to eligible students attending qualified institutions. The CCC Transfer Entitlement Awards provide Cal Grant A and B awards to every student who graduated from a California high school after June 30, 2000, was a California resident at the time of high school graduation, transferred to a qualifying baccalaureate-degree granting institution from a CCC during the award year, was under the age of 28 at the time of the transfer, had a minimum California Community College grade point average (GPA) of 2.4, and met the Cal Grant financial and eligibility requirements. (Education Code § 69436)

The Transfer Entitlement award provides for full fees at CCC, California State University (CSU) and the University of California (UC), as well as tuition support at private California colleges and universities. For veterans 28 years or older, particularly for veteran students who have exhausted GI bill eligibility, this bill would provide a new education benefit that otherwise would not have been available.

Additionally, maximum award amounts for California State University (CSU) and University of California (UC) are established in the annual Budget Act and have traditionally covered all system wide tuition and fees. The maximum tuition award for Cal Grant A and B for students attending private for-profit colleges is $4,000, and for students attending non-profit or Western Association of Schools and Colleges (WASC)-accredited for-profit institutions is $9,084. (EC § 69432)

The federal GI Bill provides active-duty service members and veterans a monthly tax-free benefit to be used for tuition, books, fees, and living expenses while earning an undergraduate or graduate degree, or attending trade school. The GI bill could provide veteran students up to $20,000 (approximately) in education benefits for the 2015-16 academic year.

The federal government is the last payer if the state offers an equivalent tuition benefit to veterans. As such, this bill specifies that a veteran cannot use both sources within the same academic year. A student would need to choose when to use either award in order to maximize the expanded benefit provided by provisions in this bill.

Proposed Law:

This bill exempts current and former members of the Armed Forces of the United States, as specified, from the age cap to qualify for the CCC Transfer Cal Grant Entitlement Program, unless the member has received a dishonorable or bad conduct discharge.

This bill also prohibits an institution from accepting award funds through the CCC Transfer Cal Grant Entitlement Program and the veteran's GI Bill in the same award year for a current or former member of the Armed Forces who is 28 years of age or older.

Staff Comments:

This bill removes the age limit for a CCC Transfer Entitlement Award for current and former members of the Armed Forces of the United States. There are an estimated 6,255 veterans at the California State University (CSU) and 1,936 at the University of California (UC) that are using their GI bill benefits. However, it is unknown how many of these students transferred from the CCCs, are 28 years old or older, or meet the Cal Grant income and eligibility requirements. Those eligible for Cal Grants would be fewer than the number of students using their GI bill benefits, as Cal Grants are need-based awards.

In addition, it is unknown how many of these students would be motivated to take a Cal Grant award over using their GI bill benefits as the latter provides a greater benefit. It is conceivable that students may wish to use a Cal Grant award instead of their GI bill benefits if they have plans to pursue graduate school.

For illustrative purposes, assuming one-fourth of the number of veteran students at UC and CSU represents the incoming freshman class as well as those eligible for the CCC Transfer Cal Grant Entitlement Program, and of these, one percent of students choose to access this benefit, it is estimated that costs for one year of additional Cal Grant A awards under this scenario would amount to about $145,000. This estimate does not account for students transferring to private postsecondary schools.

Staff notes, one of the conditions for CCC Transfer Cal Grant Entitlement Program eligibility is that the student graduated from a California high school or its equivalent during or after the 2000-01 academic year. This provision appears to effectively set another cap on age since individuals that graduated high school in 2001 would likely be about 31 years old. This bill would remove the age eligibility cap of 28 years old and, because of the high school requirement, the result could only expand the CCC Transfer Cal Grant Entitlement Program to students who are three years older. Under this scenario, potential increased costs in the Cal Grant program would be somewhat mitigated.

-- END --

SENATE COMMITTEE ON EDUCATION

Senator Carol Liu, Chair

2015 - 2016 Regular

Bill No: AB 1361

Subject: Student financial aid: Cal Grant Program: veterans

SUMMARY

This bill exempts a current or former member of the Armed Forces of the United States, unless the individual received a dishonorable discharge, from the age limitations of the California Community College (CCC) Transfer Cal Grant Entitlement Program.

BACKGROUND

Existing law establishes the Cal Grant program, administered by the California Student Aid Commission (CSAC), to provide tuition and access cost assistance to eligible students attending qualified institutions. The CCC Transfer Entitlement Awards provide Cal Grant A and B awards to every student who graduated from a California high school after June 30, 2000, was a California resident at the time of high school graduation, transferred to a qualifying baccalaureate-degree granting institution from a CCC during the award year, was under the age of 28 at the time of the transfer, and had a minimum California Community College grade point average (GPA) of 2.4.

(Education Code § 69432)

Additionally, maximum award amounts for California State University (CSU) and University of California (UC) are established in the annual Budget Act and have traditionally covered all system wide tuition and fees. The maximum tuition award for Cal Grant A and B for students attending private for-profit colleges is $4,000 (commencing 2013-14), and for students attending non-profit or Western Association of Schools and Colleges (WASC)-accredited for-profit institutions is $8,056 (commencing 2015-16). (EC § 69432)

ANALYSIS

This bill:

1. Exempts a current or former member of the Armed forces of the United States, unless the individual received a dishonorable discharge, from the age limitations of the California Community College (CCC) Transfer Cal Grant Entitlement Program.

2. Requires an institution to ensure that it does not accept award funds under both this section and United States Code Title 38 in the same award year for a current or former member of the Armed Forces of the United States who is 28 years of age or older.

STAFF COMMENTS

1. Need for the bill. Current law requires a student to be under the age of 28 years old in order to be eligible for the California Community College Transfer Entitlement (Transfer Entitlement). According to the author, this age eligibility requirement presents a barrier for veterans who as a result of their time in the service, attend college later in life, tend to be older and are more likely to support a family while enrolled in school. The California Community College Chancellor’s Office reports that approximately 27,000 of veterans attending California Community Colleges (CCC) are over the age of 30. This bill seeks to allow veterans greater access to higher education by removing the age requirement in order to qualify for the Transfer Entitlement Award.

2. The Community College Transfer Entitlement Program. The Transfer Entitlement award was structured to provide the same guarantee of the Cal Grant eligibility to California students who start at community college and transfer to a four year college or university some years later, as the Cal Grant Entitlement program provides high school students entering directly into four year college or university maximum award amounts.

The Transfer Entitlement award provides for full fees at CCC, California State University (CSU) and the University of California (UC), as well as tuition support at private California colleges and universities. For veterans 28 years or older this bill would provide a new education benefit that otherwise would not have been available. Particularly for veteran students who have exhausted GI bill eligibility.

3. Other tuition benefits for veterans. Veterans may access various education benefit programs through the federal government. Most commonly known, the federal Montgomery GI Bill provides active-duty service members and veterans a monthly tax-free benefit to be used for tuition, books, fees, and living expenses while earning an undergraduate or graduate degree, or attending trade school. The GI bill could provide veteran students up to $20,000 (approximately) in education benefits for the 2015-16 academic year.

The federal government is the last payer if the state offers an equivalent tuition benefit to veterans. As such, this bill specifies that a veteran cannot use both sources within the same academic year. A student would need to choose when to use either award in order to maximize the expanded benefit provided by provisions in this bill.

4. Prior Legislation.

AB 303 (Calderon, 2014) would have entitled an otherwise eligible veteran to a Cal Grant A Entitlement Award or a Cal Grant B Entitlement Award. AB 303 was pulled from the Assembly Higher Education committee at the request of the chair.

SUPPORT

California Community Colleges Chancellor’s Office

California School Employees Association

California Student Aid Commission

Community College League of California

OPPOSITION

None received.

-- END --

ASSEMBLY THIRD READING

ATR Bill Id:AB 1361

Author:(Burke)

As Amended Ver:May 20, 2015

Majority vote

SUMMARY: Exempts a current or former member of the Armed Forces of the United States, unless the individual received a dishonorable discharge, from the age limitations of the California Community College (CCC) Transfer Cal Grant Entitlement Program. Requires an institution to ensure that it does not accept award funds under both this section and United States Code Title 38 in the same award year for a current or former member of the Armed Forces of the United States who is 28 years of age or older.

EXISTING LAW: Establishes the Cal Grant program, administered by the California Student Aid Commission (CSAC), to provide tuition and access cost assistance to eligible students attending qualified institutions. The CCC Transfer Entitlement Awards provides Cal Grant A and B awards to every student who graduated from a California high school after June 30, 2000, was a California resident at the time of high school graduation, transferred to a qualifying baccalaureate-degree granting institution from a CCC during the award year, was under the age of 28 at the time of the transfer, and had a minimum California Community College grade point average (GPA) of 2.4. Maximum award amounts for California State University (CSU) and University of California (UC) are established in the annual Budget Act and have traditionally covered all systemwide tuition and fees. The maximum tuition award for Cal Grant A and B for students attending private for-profit colleges is $4,000 (commencing 2013-14), and for students attending non-profit or Western Association of Schools and Colleges (WASC)-accredited for-profit institutions is $8,056 (commencing 2015-16).

FISCAL EFFECT: According to the Assembly Appropriations Committee, likely minor ongoing General Fund costs for additional Cal Grants. Because GI Bill benefits are more generous that Cal Grants, which only cover tuition costs (plus a stipend under Cal Grant B), veterans eligible for both benefit would be more likely to use the former. Examples where this bill might apply would be a transferring veteran who elects to use their Cal Grant to obtain their bachelor's degree and then uses their GI Bill benefits for graduate school, or a veteran who depletes their GI Bill benefits at a private institution, then attends and completes lower division work at a community college, and finally uses their Cal Grant to get their bachelor's degree.

COMMENTS: According to the author, the age eligibility requirement presents a barrier for veterans who are attending college later in life. According to The Million Records Project by the Student Veterans of America, nationwide 85% of veteran students are older than 24 years of age, 47% of veterans students are supporting a family, and 46% of veterans students are 25 years of age or older when they first enroll in college. This bill assists veterans by removing the age eligibility requirement for current or former members of the Armed Forces of the United States for the CCC Transfer Entitlement Program.

Analysis Prepared by: Laura Metune / HIGHER ED. / (916) 319-3960 FN: 0000556

Date of Hearing: May 27, 2015

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Jimmy Gomez, Chair

ABPCA Bill Id:AB 1361

Author:(Burke) – As Amended Ver:May 20, 2015

Urgency: No State Mandated Local Program: No Reimbursable: No

SUMMARY:

This bill:

Exempts, from the age limitations (must be age 28 or younger) of the California Community College (CCC) Transfer Cal Grant Entitlement Program, a current or former member of the Armed Forces of the United States, unless the individual received a dishonorable discharge.

Stipulates that a veteran cannot use a Cal Grant awarded per (1) and the veteran's GI Bill benefits in the same academic year.

FISCAL EFFECT:

Likely minor ongoing General Fund costs for additional Cal Grants. Because GI Bill benefits are more generous that Cal Grants, which only cover tuition costs (plus a stipend under Cal Grant B), veterans eligible for both benefit would be more likely to use the former. Examples where this bill might apply would be a transferring veteran who elects to use their Cal Grant to obtain their bachelor's degree and then uses their GI Bill benefits for graduate school, or a veteran who depletes their GI Bill benefits at a private institution, then attends and completes lower division work at a community college, and finally uses their Cal Grant to get their bachelor's degree.

COMMENTS:

1. Background. The CCC Transfer Entitlement Program provides Cal Grant A and B awards to qualified students transferring from a CCC to a qualified baccalaureate-degree granting institution. Students are required to meet specified criteria, including that the student will not yet be 28 years of age by December 31 of the award year. In 2014-15, CSAC estimated 60,000 – 75,000 CCC transfer students were potentially eligible for the award, made offers to 17,745, and paid 14,491 awards. According to CSAC, the remaining students (up to 58,000) that were not offered an award may have been disqualified for a variety of reasons, including exceeding the age limit.

2. GI Bill. The Post-9/11 GI Bill provides the following annual educational benefits (when fully eligible) to current and former members of the Armed Forces:

1. Paying in-state tuition and fees (up to $17,500 annually) for students attending California schools.

2. Monthly housing allowance based on zip code of school, including for students enrolled solely in distance learning.

3. Up to $1,000 annually for books and supplies. (Cal Grants do not provide assistance specifically for books and supplies.)

4. Up to $1,200 for tutoring assistance. (Cal Grants do not provide tutoring assistance.)

5. Selected opportunities to transfer these benefits to a spouse or dependent child. (Cal Grants are nontransferable.)

3. Purpose. According to the author, the age eligibility requirement presents a barrier for veterans who are attending college later in life. According to The Million Records Project by the Student Veterans of America, nationwide 85 percent of veteran students are older than 24 years of age, 47 percent of veterans students are supporting a family, and 46 percent of veterans students are 25 years of age or older when they first enroll in college. This bill assists veterans by removing the age eligibility requirement for current or former members of the Armed Forces of the United States for the CCC Transfer Entitlement Program.

Analysis Prepared by: Chuck Nicol / APPR. / (916) 319-2081

Date of Hearing: April 28, 2015

ASSEMBLY COMMITTEE ON HIGHER EDUCATION

Jose Medina, Chair

ABPCA Bill Id:AB 1361

Author:(Burke) – As Amended Ver:April 14, 2015

SUBJECT: Student financial aid: Cal Grant Program: veterans

SUMMARY: Exempts a current or former member of the Armed Forces of the United States, unless the individual received a dishonorable discharge, from the age limitations of the California Community College (CCC) Transfer Cal Grant Entitlement Program.

EXISTING LAW: Establishes the Cal Grant program, administered by the California Student Aid Commission (CSAC), to provide tuition and access cost assistance to eligible students attending qualified institutions. The CCC Transfer Entitlement Awards provides Cal Grant A and B awards to every student who graduated from a California high school after June 30, 2000, was a California resident at the time of high school graduation, transferred to a qualifying baccalaureate-degree granting institution from a CCC during the award year, was under the age of 28 at the time of the transfer, and had a minimum California Community College GPA of 2.4. Maximum award amounts for CSU and UC are established in the annual Budget Act and have traditionally covered all systemwide tuition and fees. The maximum tuition award for Cal Grant A and B for students attending private for-profit colleges is $4,000 (commencing 2013-14), and for students attending non-profit or WASC-accredited for-profit institutions is $8,056 (commencing 2015-16).

FISCAL EFFECT: Unknown

COMMENTS: Background. As previously outlined, the CCC Transfer Entitlement Program provides Cal Grant A and B awards to qualified students transferring from a CCC to a qualified baccalaureate-degree granting institution. Students are required to meet specified criteria, including that the student will not yet be 28 years of age by December 31 of the award year. In 2014-15, CSAC estimated 60,000 – 75,000 CCC transfer students were potentially eligible for the award, made offers to 17,745, and paid 14,491 awards. According to CSAC, the remaining 42,825 to 57,825 students that were not offered an award may have been disqualified for a variety of reasons, including exceeding the age limit.

Purpose of this bill. According to the author, the age eligibility requirement presents a barrier for veterans who are attending college later in life. According to The Million Records Project by the Student Veterans of America, nationwide 85 percent of veteran students are older than 24 years of age, 47 percent of veterans students are supporting a family, and 46 percent of veterans students are 25 years of age or older when they first enroll in college. This bill assists veterans by removing the age eligibility requirement for current or former members of the Armed Forces of the United States for the CCC Transfer Entitlement Program.

GI Bill. Federal educational assistance programs for veterans have been authorized by federal law since 1944, including the Montgomery GI Bill and the Post-9/11 GI Bill. The latter provides the following annual educational benefits (when fully eligible) to current and former members of the Armed Forces:

1. Paying in-state tuition and fees (up to $17,500 annually) for students attending California schools.

2. Monthly housing allowance based on zip code of school, including for students enrolled solely in distance learning.

3. Up to $1,000 annually for books and supplies. (Cal Grants do not provide assistance specifically for books and supplies.)

4. Up to $1,200 for tutoring assistance. (Cal Grants do not provide tutoring assistance.)

5. Selected opportunities to transfer these benefits to a spouse or dependent child. (Cal Grants are nontransferable.)

What benefit will this bill provide? The federal government is the last payer if the state offers an equivalent benefit to veterans. Thus, under this bill, the state (via the Cal Grant) would pay the veteran's tuition benefit in place of the federal government. While most students will not see an additional benefit from this bill, some students may, such as students who are ineligible for the full GI Bill benefits, students attending private institutions that participate in the Yellow Ribbon Program, and Cal Grant B students who receive the access award.

REGISTERED SUPPORT / OPPOSITION:

Support

American Legion-Department of California

AMVETS-Department of California

California Association of County Veteran Service Officers

California Military Officer Association of America

California State Commanders Veterans Council

California Student Aid Commission

Community College League of California

National Association of Social Workers – California Chapter

Vietnam Veterans of America-California State Council

Opposition

None on File

Analysis Prepared by: Laura Metune / HIGHER ED. / (916) 319-3960