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