Sponsor: Assemblymember John Perez (D)
Summary: Current version (5/23/2014): Establishes the California Student Loan Refinancing Program under the administration of the California Educational Facilities Authority with the goal of helping eligible college graduates to refinance student loan debt at favorable rates by creating a revolving fund so that additional refinancing may occur to help more qualified borrowers through the creation of a loss reserve account.
Authorizes the California Educational Facilities Authority to contract with any financial institution for the purpose of allowing the financial institution to participate in the program. Requires the authority to establish a loan loss reserve account consisting of moneys deposited by the authority, as specified, for each financial institution with which the authority enters into a contract. Species the conditions under which a qualified loan, as defined, may be enrolled in the program in order to obtain the protection against loss provided by its loss reserve account.
Establishes eligibility requirements for qualified borrowers to participate in the program. Requires the authority to submit an annual report to the Governor and the Legislature describing the program’s financial condition and results. Authorizes the board of the California Educational Facilities Authority to adopt emergency regulations and procedures for the implementation of the program.
Amendment #1 (5/23/2014): http://www.leginfo.ca.gov/pub/13-14/bill/asm/ab_2351-2400/ab_2377_bill_20140523_amended_asm_v98.pdf
Introduced version: http://www.leginfo.ca.gov/pub/13-14/bill/asm/ab_2351-2400/ab_2377_bill_20140221_introduced.pdf
Status: Introduced 2/21/2014. Referred to Assembly Committee on Higher Education 3/10/2014. Hearing held, reported; re-referred to Assembly Committee on Appropriations 4/29/2014. Hearing held 5/14/2014. Hearing held, amended 5/23/2014. Passed Assembly, received in Senate 5/28/2014. Referred to Senate Committee on Education 6/11/2014. Hearing held, reported; re-referred to Committee on Appropriations 6/25/2014. Hearing held 8/4/2014.
Outlook: This measure was determined to have a significant fiscal impact by the Committee on Appropriations and placed in its suspense file for further consideration at a later date. The suspense file is a function of the fiscal committee in both chambers. Per Joint Rule 61(b)(14), the committee has by August 15 to act on this measure.
After allowing for public testimony, the Senate Committee on Education recommended this measure for passage by a 5-1 vote. The measure will next be referred to the Senate Committee on Appropriations for consideration. As this measure contains fiscal provisions it must be approved by the Appropriations Committee before it may be considered by the full chamber.
The Senate Rules Committee has referred this measure to the Senate Committee on Education, chaired by Carol Liu (D).
The Assembly adopted this measure by a 74-2 vote and transmitted it to the Senate. While not required, the sponsor has failed to garner the cosponsorship of any member of the second chamber.
The sponsor is a member of the majority party but has not garnered the support of any cosponsors. The Democratic Party controls both legislative chambers as well as the Office of Governor.
Effective Date: Upon approval of the Governor.
*Information provided by www.stateside.com