BILL ANALYSIS Ó Senate Appropriations Committee Fiscal Summary Senator Christine Kehoe, Chair AB 636 (Knight) Hearing Date: 8/15/2011 Amended: 7/12/2011 Consultant: Maureen Ortiz Policy Vote: VA: 7-0 ED: 10-0 _________________________________________________________________ ____ BILL SUMMARY: AB 636 requires any public or private postsecondary educational institution to refund 100% of the tuition and fees paid if the student is called to active military duty. _________________________________________________________________ ____ Fiscal Impact (in thousands) Major Provisions 2011-12 2012-13 2013-14 Fund Tuition refund: CSU ----unknown, not significant---- General Community Colleges ----likely less than $15 annually---- General* *Costs count toward meeting the Prop. 98 goals. _________________________________________________________________ ____ STAFF COMMENTS: The exact costs will be determined by the number of students who are called to active military service while in the midst of an academic term, and after the withdraw date specified by the institution. However, during FY 2008-09 the CCC showed a total of 321 military withdrawals statewide resulting in refunds of about $26,000. Although AB 636 will require the refunding of additional tuition fees, it is not expected to result in a significant impact. According to the California State University, the instance of refunding tuition is not common and the expansion in this bill will not result in significant new costs. The University of California indicates that this bill only codifies current practice and does not expect any additional costs. Current law, the California Military Families Financial Relief Act of 2005 (and expanded by SB 1075, Chapter 284, Statutes of AB 636 (Knight) Page 1 2010), grants the following provisions for any student who is granted an academic leave of absence for military service: a) The educational institution must make arrangements to reasonably accommodate and assist the student to complete coursework requirements missed due to military service. b) Credit 100% of the tuition and fee charges toward a subsequent academic term in which the student is required to report for military services. c) Refund 100% percent tuition and fees paid for the academic term provided the student withdraws before the withdraw date established by the institution. d) Restore the student to the educational status the student had attained prior to being called to military service without loss of academic credits earned, scholarships or grants awarded, or tuition or fees paid prior to the commencement of military service. AB 636 will further require the refund of tuition and fees, regardless of whether the student is called to military service before the academic term had commenced or after the term had begun.