BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 290| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- 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 CONTINUED SB 290 Page 2 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 CONTINUED SB 290 Page 3 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. CONTINUED SB 290 Page 4 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 **** END **** CONTINUED