BILL ANALYSIS Ó AB 2478 Page 1 Date of Hearing: May 9, 2012 ASSEMBLY COMMITTEE ON APPROPRIATIONS Felipe Fuentes, Chair AB 2478 (Hayashi) - As Amended: April 9, 2012 Policy Committee: Higher EducationVote:9-0 Veterans Affairs 8-0 Urgency: No State Mandated Local Program: Yes Reimbursable: Yes SUMMARY This bill provides that a California Community College (CCC) student who was stationed in California for more than one year immediately prior to being discharged, is exempt from paying nonresident fees for up to four years upon filing an affidavit with the community college stating their intent to establish residency as soon as possible. FISCAL EFFECT The difference between resident and non-resident fees at the CCC is $133 per unit. For a full-time student (30 units in an academic year) the additional fee revenue to the CCC is $4,000. There are about 44,000 veterans currently enrolled in the community colleges. The Chancellor's Office does not know how many of these students are paying non-resident fees and could thus benefit from this bill. If only one percent of these students could benefit from this bill and pay the resident fees, and only half were full-time students with the remainder half-time students, the annual revenue loss to the CCC would be $1.3million. Community college districts would also incur state reimbursable costs to administer this benefit. COMMENTS 1)Background . Current law establishes the requirements for determining residency in order to qualify for paying the lower-cost "in-state" tuition and student fees at UC, CSU, and CCC. To qualify for the California resident fees, students are generally required to have resided in the state for more than AB 2478 Page 2 one year immediately preceding the residence determination date and undertake other specified actions such as registering to vote or registering one's car in California. Current law allows students who were on active duty in California for at least one year immediately prior to their discharge to instead pay in-state tuition and fees until the minimum time when they should have established residency and otherwise qualify for in-state tuition. 2)Purpose . According to the author, this bill will allow veterans who were discharged from a military installation in California additional time (up to four years) to establish residency if they need to briefly return to their home state prior to attending community college. The Chancellor's Office also indicates that some veterans do not begin the residency process immediately after discharge for various reasons, including rehabilitation from injuries. 3)Related Legislation . AB 2250 (Gaines), also on today's committee agenda, provides that a student, or their spouse, who served in the Armed Forces for at least 36 months and received an honorable discharge is exempt from paying non-resident tuition for their first year of continuous enrollment at the CCC, the California State University (CSU), and the University of California (UC) if that student files an affidavit with the college stating their intent to establish residency in California. 4)Prior Legislation . AB 2472 (Wyland) of 2006, which was substantially similar to AB 2250, was held on this committee's Suspense File. Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081