BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



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                                    THIRD READING


          Bill No:  SB 290
          Author:   Knight (R) and Walters (R), et al.
          Amended:  5/28/13
          Vote:     21

           
           SENATE EDUCATION COMMITTEE  :  9-0, 4/24/13
          AYES:  Liu, Wyland, Block, Correa, Hancock, Hueso, Huff,  
            Jackson, Monning

           SENATE APPROPRIATIONS COMMITTEE  :  7-0, 5/23/13
          AYES:  De León, Walters, Gaines, Hill, Lara, Padilla, Steinberg


           SUBJECT  :    Nonresident tuition exemption:  veterans

           SOURCE  :     Author


           DIGEST  :    This bill exempts a student attending the California  
          Community Colleges (CCC), the California State University (CSU),  
          or as an undergrad at the University of California (UC) from  
          paying nonresident tuition if that student was a member of the  
          Armed Forces of the United States stationed in this state on  
          active duty for more than one year immediately prior to being  
          discharged if he/she files an affidavit with the institution at  
          which he/she is enrolled or intends to enroll, stating that  
          he/she intends to establish residency in California as soon as  
          possible, and uses this exemption within two years of being  
          discharged.

           ANALYSIS  :    Existing law, requires a student who was a member  
          of the Armed Forces stationed in California on active duty for  
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          more than one year immediately prior to being discharged to be  
          exempt from paying nonresident tuition for the length of time  
          he/she lives in the state, up to the minimum time necessary to  
          become a resident.  In addition, existing 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/her intention to establish residency in California  
          as soon as possible.  

          Existing law establishes uniform residency requirements for  
          purposes of ascertaining the amount of fees to be paid by  
          students at the UC, CSU, CCC, and establishes various exceptions  
          to these residency requirements, including the following:

          1. A member of the Armed Forces who is stationed in the state on  
             active duty, except a member assigned for educational  
             purposes.  

          2. A member of the Armed Forces who is transferred to another  
             state but continuously enrolled at a college in California.  

          3. A student who is a dependent of a member of the Armed Forces  
             stationed in this state on active duty. 

          4. A student dependent of a member of the Armed Forces may keep  
             his/her resident classification until he/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. 

          This bill exempts a student attending the CCC, CSU, or as an  
          undergrad at the UC from paying nonresident tuition if that  
          student was a member of the Armed Forces of the U.S. stationed  
          in this state on active duty for more than one year immediately  
          prior to being discharged if he/she files an affidavit with the  
          institution at which he/she is enrolled or intends to enroll,  
          stating that he/she intends to establish residency in California  
          as soon as possible, and uses this exemption within two years of  
          being discharged.

           Comments

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          According to the Senate Education Committee analysis, the 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 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.  

          AB 2478 (Hayashi, Chapter 405, Statutes of 2012) 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  
          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.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  Yes

          According to the Senate Appropriations Committee, the cost of  
          this bill's nonresident tuition exemption to the UC and CSU  
          depends upon the number of veterans that meet the narrow  
          requirements to qualify for the exemption.  This bill is likely  
          to result in significant revenue loss to the CSU and UC.


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           SUPPORT  :   (Verified  5/28/13)

          American Legion-Department of California
          AMVETS, Department of California
          California Association of County Veterans Service Offices
          California State Commanders Veterans Council
          North Orange County Community College District
          Rancho Santiago College District
          South Orange Coast County Community College District 
          VFW - Department of California
          Vietnam Veterans of America - California State Council
          Veterans Caucus California Democratic Party


           ARGUMENTS IN SUPPORT  :    According to the author's office, this  
          bill allows a student that served as a member of the Armed  
          Forces to pay in-state tuition when seeking to further their  
          education.  Individuals committed to the Armed Forces serve all  
          citizens of the U.S., not just one state.  As such, they should  
          not be penalized when following their educational passions after  
          their service.  Given the enormous challenges facing veterans  
          upon discharge, California needs to make higher education for  
          veterans more attainable.


          PQ:k  5/28/13   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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