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.