HOUSE BILL REPORT

SB 5197

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

As Reported by House Committee On:

Housing, Community Development & Veterans

Title: An act relating to the Washington national guard postsecondary education grant program.

Brief Description: Concerning the Washington national guard postsecondary education grant program.

Sponsors: Senators Hobbs, Zeiger, Wagoner, Short, Bailey, Hunt, Fortunato and Keiser; by request of Military Department.

Brief History:

Committee Activity:

Housing, Community Development & Veterans: 3/22/19, 3/26/19 [DP].

Brief Summary of Bill

  • Renames the Washington State National Guard Conditional Scholarship Program the "Washington National Guard Postsecondary Grant Program" (Grant Program).

  • Transfers the Grant Program administrative functions from the Office of the Adjutant General to the Office of Student Financial Assistance (Office).

  • Establishes additional eligibility requirements for Grant Program participants.

  • Requires the Office to establish rules addressing the terms of repayment of grants from the Grant Program.

HOUSE COMMITTEE ON HOUSING, COMMUNITY DEVELOPMENT & VETERANS

Majority Report: Do pass. Signed by 9 members: Representatives Ryu, Chair; Morgan, Vice Chair; Jenkin, Ranking Minority Member; Gildon, Assistant Ranking Minority Member; Barkis, Entenman, Frame, Leavitt and Reeves.

Staff: Cassie Jones (786-7303).

Background:

National Guard Conditional Scholarship Program.

The Washington State National Guard Conditional Scholarship Program (Program), administered by the Office of the Adjutant General of the Washington State Military Department (Military Department), provides conditional scholarships to eligible students who are enlisted members, or officers of the rank of captain or below in the Washington National Guard (Guard). The duties of the Adjutant General's Office in administering the Program include, but are not limited to, the following:

Conditional scholarships are given to participants in the form of a loan that is forgiven in whole or in part if the recipient completes the requisite service as a member of the Guard. Participants in the Program incur an obligation to repay the conditional scholarship, with interest, unless they serve in the Guard for one additional year for each year of conditional scholarship received. Participants in the Program are required to attend an approved institution of higher education that is located in Washington.

If a participant in the Program elects to repay the conditional scholarship, the repayment period must be four years and the interest rate must be 8 percent per year. Payments accrue quarterly commencing nine months from the date that the participant leaves the Guard or withdraws from the institution of higher education, whichever comes first.

Office of Student Financial Assistance.

The Office of Student Financial Assistance (Office), within the Washington Student Achievement Council (WSAC), administers state and federal financial aid and other education service programs, including the State Need Grant and College Bound Scholarship. The WSAC is the agency responsible for strategic planning, oversight, and advocacy regarding higher education in Washington.

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Summary of Bill:

The Washington State National Guard Conditional Scholarship Program is renamed "Washington National Guard Postsecondary Grant Program" (Grant Program) and administration of the Grant Program is transferred from the Office of the Adjutant General to the Office.

Under the Grant Program, an eligible student must meet the following additional requirements:

The Office is required to select eligible students to receive grants under the Grant Program with assistance from the Military Department. The following additional criteria are created regarding the selection of eligible students:

The Office is required to adopt rules addressing the terms for repayment of grants, including applicable interest rates, fees, and deferments for Grant Program participants who do not complete their Guard service obligations. Existing requirements for the terms of repayment of conditional scholarships are eliminated.

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Appropriation: None.

Fiscal Note: Available.

Effective Date: The bill takes effect 90 days after adjournment of the session in which the bill is passed.

Staff Summary of Public Testimony:

(In support) The Washington National Guard (Guard) is in a crisis state regarding strength levels and this affects the Guard's readiness to fight fires and floods. If the strength problem is not corrected the military may rebalance the force and move entire units. The state could lose federal dollars, full-time jobs, and the capacity to fight fires and save homes from floods. This bill would help correct this by attracting new Guard members. Washington also competes with the Oregon National Guard as well as the active army recruiters. This bill helps with workforce development.

Most people who enter the military do it to obtain an education. Families want to know what benefits are available. The Guard recruiters have to compete with active duty and reserve recruiters who offer greater education benefits than the Guard. The Guard needs more recruiting incentives. This bill would be a game-changer for recruiting Guard members. The Guard has lost 400 members to the Oregon National Guard which has a program like the one this bill creates. This bill provides an investment in Washington's economy.

(Opposed) None.

Persons Testifying: Senator Hobbs, prime sponsor; Gent Welsh, Washington Air National Guard; Robert Sweeney, National Guard Association of Washington; and Steve DuPont, Central Washington University.

Persons Signed In To Testify But Not Testifying: None.