05/02/1995 02:04 PM House HES

 SB 123 - POSTSECONDARY EDUCATION PROGRAMS                                   
                                                                               
 Number 129                                                                    
                                                                               
 DR. JOE McCORMICK, Executive Director, Postsecondary Education                
 Commission, Department of Education (DOE), said SB 123 is basically           
 the same as HB 257 which was passed by the House HESS Committee.              
 However, there are two notable exceptions.  The loan limits, as               
 they apply to career school programs, were modified to allow for a            
 $6,500 annual maximum for programs that are 30 or more weeks in               
 length.  That is the standard definition of a year in length.  A              
 $4,500 maximum was established for programs that were less than 30            
 but more than 20 weeks in length; and a $3,000 maximum was allowed            
 for programs of less than 20 weeks in length but at least 10 weeks.           
                                                                               
 DR. McCORMICK continued that HB 257 had a total maximum loan                  
 eligibility of $79,000.  The Senate modified that to $60,000.  As             
 a point of reference, the $60,000 does represent about a 26 percent           
 increase over the current maximums allowed for under current law.             
 In addition, SB 123 denies loans to individuals who are                       
 incarcerated full-time.  HB 257 provided loans for incarcerated               
 individuals who were scheduled for release within two months.                 
                                                                               
 DR. McCORMICK recommended that the HESS Committee embrace the                 
 Senate bill, and pass it.                                                     
                                                                               
 Number 268                                                                    
                                                                               
 CO-CHAIR BUNDE announced for the record that Representative Vezey             
 joined the meeting at 2:08 p.m.                                               
                                                                               
 CO-CHAIR CYNTHIA TOOHEY said her office received two communications           
 from people who feared they would not be able to get loans for                
 trade schools because those schools were less than six months in              
 duration.  She asked how those schools were addressed.                        
                                                                               
 DR. McCORMICK said the original house version, HB 257, proposed               
 that those programs that were one year in length remain at $5,500,            
 and those programs that were less than nine months in length were             
 dropped to $4,000.  The Senate version came up with a compromise              
 that actually improves the situation regarding trade schools.                 
 Those programs that are a year in length are allowed $6,500.  That            
 is $1,000 more than they now receive.  Those programs that are 20             
 to 30 weeks in length are allowed $3,500, which is $500 more than             
 allowed by the House version.                                                 
 DR. McCORMICK continued that those programs that are less than 20             
 weeks but are at least 10 weeks in length are allowed $3,000 a                
 year.                                                                         
                                                                               
 Number 362                                                                    
                                                                               
 REPRESENTATIVE AL VEZEY asked Dr. McCormick to comment on how many            
 trade school or vocational programs are less than six months in               
 length.                                                                       
                                                                               
 DR. McCORMICK responded that approximately 70 to 80 percent of                
 those programs are of that duration.  They usually run about six              
 months to a year.                                                             
                                                                               
 REPRESENTATIVE VEZEY asked how many are less than six months in               
 duration.                                                                     
                                                                               
 DR. McCORMICK answered no more than 30 percent, perhaps only 10 to            
 15 percent.                                                                   
                                                                               
 REPRESENTATIVE VEZEY said that is in terms of programs.  If it is             
 broken down into student classroom or learning hours, what are the            
 numbers?                                                                      
                                                                               
 DR. McCORMICK said it does not break down into very many students.            
 Typically, a small school like that does not enroll more than 10 to           
 20 students per term.  Those schools are usually very small                   
 operations.                                                                   
                                                                               
 Number 431                                                                    
                                                                               
 REPRESENTATIVE CAREN ROBINSON joined the meeting at 2:10 p.m.                 
                                                                               
 REPRESENTATIVE TOM BRICE said in other words, something like a                
 beauty school would no longer be eligible.                                    
                                                                               
 DR. McCORMICK indicated that was not correct.  Under SB 123                   
 everyone who is currently eligible will still be eligible.  The               
 change occurs in the amounts allowed.  Currently, all program                 
 lengths are eligible for the same amounts, regardless of the length           
 of the program.  SB 123 simply takes into account the length of the           
 program.                                                                      
                                                                               
 CO-CHAIR BUNDE closed public testimony and asked for the wish of              
 the committee.                                                                
                                                                               
 REPRESENTATIVE BRICE moved CSSB 123(FIN) from the HESS Committee              
 with individual recommendations and accompanying zero fiscal note.            
 There were no objections, and the bill passed.