BILL ANALYSIS �
SENATE COMMITTEE ON EDUCATION
Carol Liu, Chair
2013-2014 Regular Session
BILL NO: SB 329
AUTHOR: Gaines
AMENDED: April 3, 2013
FISCAL COMM: Yes HEARING DATE: April 17, 2013
URGENCY: No CONSULTANT:Daniel Alvarez
SUBJECT : Community colleges: nonresident tuition: Lake
Tahoe Community
College.
SUMMARY
This bill exempts persons residing in specified communities
in the State of Nevada from paying non-resident tuition
fees if they attend the Lake Tahoe Community College
(LTCC). In addition, this bill permits the LTCC to count
these persons as resident full-time equivalent students
(FTES) for purposes of determining California apportionment
funding.
BACKGROUND
Current law authorizes a community college district (CCD)
to admit nonresident students and requires that these
students be charged a tuition fee that is twice the amount
of the fee established for in-state resident students, with
certain specified exemptions. State statute prescribes a
formula for the calculation of the nonresident fee.
Beginning July 1, 2013, state law requires the nonresident
tuition fee be increased to a level that is three times the
amount of the fee established for in-state resident
students.
Current law prohibits nonresident students from being
reported as FTES for state apportionment purposes, except
where (1) the CCD has less than 1500 FTES and is within 10
miles of another state and has a reciprocity agreement with
that state, or (2) if a CCD has between 1501 and 3000 FTES
and is within 10 miles of another state and has a
reciprocity agreement with that state, they can claim up to
100 FTES for state apportionment purposes. (Education Code
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Page 2
� 76140)
ANALYSIS
This bill exempts persons residing in specified communities
in the State of Nevada from paying non-resident tuition
fees if they attend the Lake Tahoe Community College
(LTCC). In addition, this bill permits the LTCC to count
these persons as resident full-time equivalent students
(FTES) for purposes of determining California apportionment
funding. More specifically, this bill:
1) Exempts students who attend Lake Tahoe Community
College (LTCC) from being charged non-resident student
tuition fees if they reside in one of the following
communities in Nevada:
a) Incline Village.
b) Kingsbury.
c) Round Hill.
d) Skyland.
e) Stateline.
f) Zephyr Cove.
2) States a person shall have residence in one of the
communities listed above if they lived in that
community for more than one year immediately prior to
seeking the fee exemption.
3) Requires the LTCC to adopt rules and regulations for
determining a student's residence classification and
for establishing procedures for an appeal and review
of residence classification.
4) Permits LTCC to report the non-resident students,
exempted from paying the non-resident fees, as
resident full-time equivalent students (FTES) for
state apportionment purposes.
STAFF COMMENTS
1) According to the author , this college is in a unique
location where its proximity to Nevada necessitates
access to the college by students on both sides of the
state line, and there is an undue burden on Nevada
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students if forced to pay non-resident tuition to
attend a school that is only a few short miles away.
For example, Whitell High School graduates and other
Nevadans, most of whom live no more than a five to ten
minute drive from LTCC, must now pay six times the
rate of their California neighbors to access a higher
education and workforce training.
2) Reciprocity, a mutual exchange of interests, no longer
exists with Nevada . According to the Legislative
Analyst Office, in August 2011, the State of Nevada
terminated the "Good Neighbor" tuition agreement that
allowed California students from designated counties
to attend Nevada colleges at significantly reduced
nonresident tuition rates. Under this agreement,
Nevada students were also able to enroll in the
California Community Colleges (specifically, Lassen,
Feather River, Lake Tahoe and Barstow) without having
to pay full nonresident tuition.
Effective, November 2011, California students
enrolling for the first time in Nevada colleges will
be charged the full nonresident tuition and all the
California Community Colleges will be required to
charge nonresident tuition for Nevada residents
enrolling for the first time in California,
effectively ending the ability of the California
Community Colleges (CCC) to provide exemptions for
Nevada students.
Reciprocity agreements, allow the flow of tangible
economic and educational benefits to citizens of both
states. The absence of a "good neighbor" or
reciprocity agreement shifts the total burden of
paying for these benefits to California residents.
3) Fee changes to take effect July 1, 2013 . According to
the Senate Budget Committee, as part of the 2012
Budget Act, the State changed the level of nonresident
fees to $138 per unit (three times the amount of
California resident student fee of $46 per unit). By
establishing neighboring state student fees at a
multiple of the current California resident student
fee, the new fee would allow neighboring student fees
to adjust in concert with any future adjustments to
resident student fees. The Budget Committee indicates
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this fee level would be approximately midway between
Oregon, Nevada, and Arizona resident student fees,
that range in the mid-$70 per unit, and California
nonresident student fees, that range around $200 per
unit.
4) This bill allows nonresidents to be counted for state
funding purposes without limit . Under limited
conditions, the state allows for nonresidents to be
counted for state funding purposes. However, this
measure will allow an unlimited number of nonresident
to be counted for state funding. Our recent austere
budget times require that uses for any available
California General Fund resources should be closely
scrutinized.
As of March 2013, the State Chancellor's office
reports that statewide there are 11,300 unfunded FTES,
students that attend a CCC, but where the state does
not provide funding. The LTCCs reports zero unfunded
FTES. Generally, CCCs in declining enrollment enjoy a
one-year funding grace period from the decline, after
that, the unused FTES is redistributed within the
community college system.
According to the Legislative Analyst Office, in
2011-12 the Lake Tahoe Community College District
served a total of 1,937 FTES. Of this amount, 11
percent, or 225 FTES, were for physical fitness and
recreation courses, followed by general mathematics
(151 FTES) and English (140 FTES).
SUPPORT
Montblue Resort Casino and Spa
Lake Tahoe Visitors Authority
Concerned citizen
OPPOSITION
None on file.