BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 13
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          Date of Hearing:   March 19, 2013

                       ASSEMBLY COMMITTEE ON HIGHER EDUCATION
                                 Das Williams, Chair
             AB 13 (Chávez and Quirk-Silva) - As Amended:  March 11, 2013
           
          SUBJECT  :   Nonresident tuition exemption: veterans.

           SUMMARY  :   Exempts former members of the Armed Forces, who were  
          honorably discharged or released from active duty within the  
          immediately prior year, from paying nonresident tuition at the  
          California State University (CSU) and California Community  
          Colleges (CCC).    

           EXISTING LAW  establishes uniform residency requirements for  
          purposes of ascertaining the amount of fees to be paid by  
          students at CSU and CCC and establishes various exceptions to  
          these residency requirements, including many for current and  
          former members of the Armed Forces (Education Code § 68074 and  
          68075).  The University of California (UC), as a result of its  
          constitutional autonomy, establishes its tuition policies;  
          however, these policies traditionally mirror state policies.

           FISCAL EFFECT  :   Unknown but potentially significant.

           COMMENTS  :   This bill is double-referred to the Assembly  
          Veterans Affairs Committee.

           Background  .  Current law establishes the requirements for  
          determining residency for purposes of paying the lower-cost  
          "in-state" student fees at UC, CSU, and CCC.  To qualify for the  
          lower resident fees, students are generally required to have  
          resided in California for more than 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.

           What benefit does this bill provide  ?  By removing the  
          requirement that veterans must have served in California for one  
          year immediately prior to discharge, this bill would allow  
          veterans from other states to pay resident tuition rates instead  
          of the higher nonresident rate for up to one year.  The  
          Post-9/11 GI Bill benefits fund a student's in-state tuition and  
          fees.  Thus, this bill would provide a subsidy equaling the  
          difference between the resident and non-resident fees at the  








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          student's college or university during his or her first year.   
          After the first year, when the student will have had the  
          opportunity to establish residency, the Post-9/11 GI Bill would  
          fully cover the student's fees.  

           Benefits of California-resident classification  .  UC, CSU, and  
          CCC are publicly subsidized with the proceeds of state taxes;  
          the lower resident fees for students who reside in California  
          reflect the contribution they and their parents have already  
          made by paying taxes in California.  The fees charged to  
          non-California residents are intended to cover the cost of the  
          subsidy that is generated by California taxpayers.  In addition  
          to in-state tuition and fees, full-time undergraduate students  
          pay the following nonresident tuition:
           
          UC                            $22,878 per year
          CSU                           $11,140 per year
          CCC            $208 per unit
           Need for this bill  .  According to the author, the difference  
          between resident and nonresident tuition is a significant  
          financial barrier for veterans from other states who wish to  
          attend a California public institution directly after discharge  
          and before they have had the opportunity to establish residency.  
           

           Federal legislation  .  This bill would extend a benefit to  
          veterans from other states that are not always provided to  
          California veterans.  According to the author, only 19 states  
          currently offer similar residency waivers, although several  
          states are considering similar legislation.  Federal legislation  
          has been introduced in both the House and the Senate to require  
          institutions that are eligible for Post 9/11 G.I. Bill benefits  
          to charge any veteran the resident tuition rate.  The Committee  
          may wish to consider whether California should wait to see if  
          federal legislation is enacted to ensure that California  
          veterans receive the same tuition benefit in all 50 states that  
          we are providing to veterans from other states. 

           Oversight hearing on student veteran issues  .  On February 28,  
          2012, the Assembly Higher Education and Assembly Veterans  
          Affairs Committees held a joint oversight hearing on the  
          challenges facing California student veterans.  Several students  
          and representatives from the higher education institutions spoke  
          for the need for more resources for veterans services, including  
          more transition assistance, improving outreach and campus-based  








                                                                  AB 13
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          programs, and easing the matriculation of prior military  
          learning.  The Committee may wish to consider whether funding  
          fee waivers for out-of-state student veterans should be a  
          priority in light of the need to improve services for California  
          student veterans, who may or may not receive the reciprocal  
          benefit in other state.

           Revenue loss to the segments  .  All three segments have seen  
          significant reductions in state support in recent years,  
          resulting in tuition and fee increases and enrollment  
          reductions.  This measure would result in further revenue losses  
          to the segments and competition with California residents  
          struggling to get courses.  If the intent of this bill is to  
          provide a benefit to non-Californian members of the military, it  
          may be more appropriate to provide this benefit directly, such  
          as through a Cal Grant dedicated to these students for the one  
          year it takes to establish residency.  This would allow the  
          Legislature to more easily track the costs of the program, as  
          well as review its merits relative to other student financial  
          aid programs and other state-supported programs, and would spare  
          the segments revenue losses.  

           Related legislation  .  SB 290 (Knight), pending in the Senate, is  
          very similar to this bill.  AB 2250 (Beth Gaines) of 2012, which  
          died in the Assembly Appropriations Committee, was substantially  
          similar to this bill.  AB 2478 (Hayashi), Chapter 405, Statutes  
          of 2012, allowed a student veteran to establish residency within  
          two years, rather than one year, of discharge.  Several similar  
          bills have been introduced annually since 2006, and all were  
          held in the Appropriations committees.   

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          American Federation of State, County and Municipal Employees,  
          AFL-CIO
          American Legion-Department of California
          AMVETS-Department of California
          California Association of County Veterans Service Officers
          California Community College, Chancellor's Office
          California State Commanders Veterans Council
          Kern Community College District
          Legion of Valor of the United States of America, Inc.
          MiraCosta Community College District








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          San Diego Community College District
          VFW-Department of California
          Vietnam Veterans of America-California State Council
          1 Individual

           Opposition 
           
          None on file.

           
          Analysis Prepared by  :    Sandra Fried / HIGHER ED. / (916)  
          319-3960