BILL ANALYSIS Ó
SENATE COMMITTEE ON EDUCATION
Carol Liu, Chair
2013-2014 Regular Session
BILL NO: AB 13
AUTHOR: Chavez
AMENDED: June 24, 2013
FISCAL COMM: Yes HEARING DATE: July 3, 2013
URGENCY: No CONSULTANT:Daniel Alvarez
SUBJECT : Nonresident tuition exemptions: veterans.
SUMMARY
This bill exempts a student attending a community college,
the California State University, or University of
California from paying nonresident tuition if that student
was a member of the Armed Forces of the United States and
discharged or released within the immediately prior year.
BACKGROUND
1) Current law, requires a student who was a member of
the Armed Forces stationed in California on active
duty for more than one year immediately prior to being
discharged to be exempt from paying nonresident
tuition for the length of time he or she lives in the
state, up to the minimum time necessary to become a
resident. In addition, current law provides, for
purposes of community college fees, a former member of
the Armed Forces can utilize the one-year nonresident
fee exemption within two years of being discharged
provided the former member of the Armed Forces has
filed an affidavit with the community college stating
his or her intention to establish residency in
California as soon as possible.
(EC § 68075.5)
2) Current law establishes uniform residency requirements
for purposes of ascertaining the amount of fees to be
paid by students at the University of California, the
California State University, the California Community
Colleges, and establishes various exceptions to these
residency requirements, including the following:
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a) A member of the Armed Forces who is
stationed in the state on active duty, except a
member assigned for educational purposes.
(Education Code § 68075)
b) A member of the Armed Forces who is
transferred to another state but continuously
enrolled at a college in California. (EC § 68075)
c) A student who is a dependent of a member of
the Armed Forces stationed in this state on
active duty. (EC § 68074)
d) A student dependent of a member of the Armed
Forces may keep his or her resident
classification until he or she has resided in the
state for the minimum time necessary to become a
resident in the event the member of the Armed
Forces upon whom they are dependent is
transferred outside of the state or retires as an
active member of the Armed Forces. (EC § 68072)
ANALYSIS
This bill exempts a student attending a community college,
the California State University, or University of
California from paying nonresident tuition if that student
was a member of the Armed Forces of the United States and
discharged or released within the immediately prior year.
STAFF COMMENTS
1) According to the author , the purpose of the bill is to
encourage veterans to attend school in our state and
to allow them to complete school without paying
tuition out of pocket. If this bill does not pass it
will bar veterans from being able to pay for
California's colleges and universities with their GI
bill benefits and will discourage them from moving to
our state.
2) Benefits of California-resident classification for
tuition and fee purposes . The University of
California, California State University, and
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California Community Colleges 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.
3) Reciprocity is not universal . This bill would extend
a benefit to veteran members of the Armed Forces from
other states that are not always provided to
California veterans by other states.
It appears that approximately 19 states currently
offer similar, but not identical, residency waivers as
envisioned by this measure; in addition, several
states are considering similar types of 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
uniform tuition benefit in all 50 states that we would
be providing to veterans from other states under this
measure.
4) Further complicating matters, past Budget shortfalls.
The recent passage of Proposition 30 has provided a
modicum of fiscal relief for the segments of
California's higher education systems. However,
recovering from the hundreds of millions in General
Fund reductions -- which translated into constrained
access to the segments, fewer course offerings and
larger classes, and reductions in student support
services -- will take time and resources. Thus
adequate funding for the varied educational priorities
of our public higher education segments continues to
be endangered and in some instances supplemented by
ensuring that non-state residents pay for the actual
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cost of their education.
This bill contemplates providing any student who was a
member of the Armed Forces of the United States to be
exempt from paying nonresident tuition. At present,
there are approximately 1.5 million active military
personnel in the Armed Forces that upon honorable
discharge or release would be eligible, under this
measure, to pay in-state tuition, irrespective of
whether they were stationed in the state of
California. It is unrealistic to believe all
discharged personnel would come to California for a
postsecondary education; however, by comparison, total
enrollment for all of public higher education is 1.6
million students. At some point it is conceivable
that a large number of California resident students
could be displaced by a shift of state resources
backfilling for the cost of educating non-resident
veterans at California's higher education
institutions.
5) Recent actions of the committee . At the April 24th
hearing of this committee, SB 290 (Knight) initially
was identical to the approach proposed in this
measure. SB 290 as initially proposed exempted a
student attending a community college, the California
State University, or University of California from
paying nonresident tuition if that student was a
member of the Armed Forces of the United States and
discharged within the immediately prior two years.
However, the author of SB 290 accepted amendments to
ensure a nexus between providing a fee waiver and
being a member of the Armed Forces stationed in this
state for more than one year immediately prior to
being discharged. SB 290 as amended was voted out of
this committee on a 9-0 vote and ultimately by the
full Senate on a 39-0 vote.
If the will of the committee is to pass this measure,
staff recommends amendments that:
(a) provide veterans with the one year exemption from
paying nonresident tuition to any public institution
of higher education (not just community colleges),
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contingent upon filing of an affidavit, as specified,
within one year of discharge, and specifies the use of
the one year fee exemption must occur within two-years
from the time of discharge; and
(b) Limit this benefit to a student who was a member
of the Armed Forces of the United States stationed in
this state for more than one year immediately prior to
being discharged.
These amendments would make this measure consistent
with SB 290 as it passed this committee on April 24th.
6) Length of time to access and maximum time limit for
benefits . According to the U.S. Department of Veteran
Affairs, the Post 9/11 GI Bill education benefit
program generally pays a total of 36 months of
benefits for up to 15 years following active duty.
This is generally the high-end of time to receive and
activate earned benefits.
7) In recognition of the difficulties of military service
and the sacrifices of service members, existing
California law assists the discharged military student
who wants to stay in California and go to school.
Current California law says the military student, once
discharged, can pay resident tuition until the student
has stayed in California long enough to establish
residency (normally one year). There may only be one
legal state of residence, so in order to become a
resident of California for tuition purposes, residency
must be relinquished in the former state of residence
for the student. Existing law strikes a balance,
allowing students to pay resident fees while on active
duty and for approximately a year after, giving time
to establish residency. This existing one-year
exemption applies however, only to students who were
stationed in California for one year prior to
discharge.
In 2012, the Legislature (AB 2478, Hayashi) further
allowed a member of the Armed Forces, who was
stationed in California, up to the minimum time
necessary to become a resident and the benefit of
in-state tuition (one year) within a two-year time
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period from date of discharge - this was in
recognition of providing veterans time to return to
their home state after being discharged and settle
personal affairs or for physical rehabilitation. This
option, however, was provided for community colleges
students only.
8) Measure is keyed with a possible mandate . To the
extent the bill would require community college
districts to exempt more students from nonresident
tuition, Legislative Counsel has opined, this bill may
impose state-mandated local program costs upon the
community colleges that may be state reimbursable.
9) Related legislation . SB 420 (Walters) is similar to
this measure, but also provides an exemption from
nonresident tuition for children and spouses of
veterans. At the author's request, the bill is a
two-year measure in this committee and Senator Walters
was added as a joint author on SB 290.
SUPPORT
AFSCME
California Community Colleges Chancellor's Office
California Catholic Conference
Community College League of California
Coast Community College District Student Council
Office of the Deputy Assistant Secretary of Defense
San Diego College Student Veterans Organization
American Legion-Department of California
AMVETS
California Association of County Veterans Service Offices
California State Commanders Veterans Council
VFW - Department of California
Vietnam Veterans of America - California State Council
State Center Community College District
Riverside Community College District
Kern Community College District
Rancho Santiago CCD
North Orange County CCD
Chaffey College
College of the Canyons
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OPPOSITION
None on file.