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