BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 636
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          CONCURRENCE IN SENATE AMENDMENTS
          AB 636 (Knight)
          As Amended  July 12, 2011
          Majority Vote
           
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          |ASSEMBLY:  |78-0 |(June 1, 2011)  |SENATE: |35-0 |(August 22,    |
          |           |     |                |        |     |2011)          |
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           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
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          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 



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