BILL ANALYSIS Ó AB 636 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 636 (Knight) As Amended July 12, 2011 Majority Vote ----------------------------------------------------------------- |ASSEMBLY: |78-0 |(June 1, 2011) |SENATE: |35-0 |(August 22, | | | | | | |2011) | ----------------------------------------------------------------- Original Committee Reference: V.A. SUMMARY : A student who withdraws prior to or during the academic term from an institution due to active military service may receive a full refund of tuition and fees paid, even if the withdrawal is after the normal withdrawal deadline. The Senate amendments slightly modify the Assembly version of this bill: 1)Specify that the institution shall refund the tuition and fees paid by the student for the academic term in which the student is required to report for military service regardless of whether the student was called to military service before the academic term had commenced or after the academic term had commenced. The refund shall equal 100% of the tuition and fee charges the student paid the institution for the applicable academic term. 2)Clarify the provisions setting the amount of the refund at the cost of the subsequent academic term. EXISTING LAW provides certain protections for members of the National Guard ordered into active state service by the Governor or active federal service by the President of the United States for emergency purposes, and for reservists called to active duty, as specified. Protections include requiring academic institutions to grant a student a military leave of absence, and at the student's election, credit the student's tuition and fee charges toward a subsequent academic term, or grant a refund of tuition and fees paid by the student for the academic term. However, in order to receive a credit or refund, the student must withdraw from the institution by a specified date. AS PASSED BY THE ASSEMBLY , this bill accomplished the same goal AB 636 Page 2 of allowing a student who withdraws from an institution to receive a refund regardless of withdrawal date. The Assembly version of this bill also contained language that the student refund amount would equal 100% of what the student paid the institution for the subsequent academic term in which the student was required to report for military service. FISCAL EFFECT : According to the Senate Appropriations Committee, 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 fiscal year 2008-09 the California Community Colleges 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. COMMENTS : The Senate version is consistent with the Assembly version. The goal of this bill is to provide refund protection for military higher education students who withdraw from school for military service. Military students have little control over withdrawal timing for military duty and performance of such duty is a laudable public service. The bill as amended in the Senate still accomplishes the main goal of the bill as passed by the Assembly and protects military students. Analysis Prepared by : John Spangler / V. A. / (916) 319-3550 FN: 0001931