BILL ANALYSIS Ó SB 290 Page 1 SENATE THIRD READING SB 290 (Knight and Walters) As Amended August 15, 2013 Majority vote SENATE VOTE :39-0 HIGHER EDUCATION 12-0 VETERANS AFFAIRS 9-0 ----------------------------------------------------------------- |Ayes:|Williams, Chávez, Bloom, |Ayes:|Muratsuchi, Chávez, | | |Fong, Fox, Levine, | |Atkins, Brown, Fox, | | |Linder, Medina, Olsen, | |Grove, Melendez, Salas, | | |Quirk-Silva, Weber, Wilk | |Yamada | | | | | | |-----+--------------------------+-----+--------------------------| | | | | | ----------------------------------------------------------------- APPROPRIATIONS 17-0 ----------------------------------------------------------------- |Ayes:|Gatto, Harkey, Bigelow, | | | | |Bocanegra, Bradford, Ian | | | | |Calderon, Campos, | | | | |Donnelly, Eggman, Gomez, | | | | |Hall, Holden, Linder, | | | | |Pan, Quirk, Wagner, Weber | | | |-----+--------------------------+-----+--------------------------| | | | | | ----------------------------------------------------------------- SUMMARY : Extends, to a California State University (CSU) undergraduate student, provisions exempting a California Community College (CCC) student- who was a member of the Armed Forces stationed in this state on active duty for more than one year immediately prior to receiving an honorable discharge- from paying nonresident tuition for up to one year while providing the student up to two years following discharge to use this exemption, if the student files an affidavit stating their intent to establish California residency as soon as possible. Requests the University of California (UC) to also adopt the above policy. FISCAL EFFECT : According to the Assembly Appropriations SB 290 Page 2 Committee: 1)For every CSU undergraduate student who would take advantage of the above exemption, CSU would lose $11,160 in non-resident tuition revenue. CSU has about 350 veteran students who do not meet residency requires. Assuming 70% of these students are undergraduates, and if only 10% of these undergraduates take advantage of the expanded exemption allowance provided in this bill, the revenue loss to CSU would be $279,000. 2)Assuming UC adopts a conforming policy, for every UC undergraduate student who would take advantage of the expanded exemption, UC would lose $22,878 in non-resident tuition revenue. In 2011-12, there were only 27 veterans who were undergraduates at UC paying non-resident tuition. If 10% of these students were to take advantage of the expanded benefit, the revenue loss to UC would be $69,000. COMMENTS : Background . Existing California law allows a discharged military student to pay resident tuition until the student has stayed in California long enough to establish residency (normally one year). This non-resident tuition exemption applies to students who were stationed in California for one year prior to discharge. For tuition purposes, there may be only one residence; in order to become a California resident the student must relinquish residency in the student's former state of residence. In order to provide veterans time after discharge to return to their home state to settle affairs, in 2012 the Legislature approved AB 2478 (Hayashi), Chapter 405, to allow CCC students to utilize the residency tuition benefit within two-years from date of discharge. Under this allowance, students are required to file an affidavit declaring their intention to establish residency as soon as possible. This bill extends this provision to undergraduate students at CSU, and requests the adoption of the provision by UC. Purpose of this bill . According to the author, currently veterans who have served at least 90 days on active duty are eligible to receive a Government Issued Bill (or GI Bill) to help pay for their college education. These federal dollars pay SB 290 Page 3 up to 100% of in-state tuition costs, in addition to providing a housing allowance and a book allowance to the veteran. However, many veterans who were stationed at bases in California just prior to discharge (and have been paying California State Taxes) have not had the opportunity to establish residency. This bill would allow a qualifying veteran student up to two years to utilize the benefit of in-state tuition as an undergraduate at a public four year institution in California. Analysis Prepared by : Laura Metune / HIGHER ED. / (916) 319-3960 FN: 0002113