BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      AB 13


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          Date of Hearing:  March 3, 2015


                       ASSEMBLY COMMITTEE ON HIGHER EDUCATION


                                    Medina, Chair


          AB  
                     13 (Chávez) - As Introduced  December 1, 2014


          SUBJECT:  Public postsecondary education:  community colleges:   
          exemptions from nonresident tuition.


          SUMMARY:  Requires a California Community College (CCC) to  
          exempt from nonresident tuition a nonresident student who is  
          using, or is intending to use, GI Bill educational benefits  
          while enrolled at a CCC.  Defines "GI Bill educational benefits"  
          to mean any educational benefit administered by the US  
          Department of Veterans Affairs pursuant to Title 38 of the  
          United States Code that is designed to help eligible veterans or  
          other eligible persons with a relationship to a veteran to cover  
          the costs associated with enrollment as a CCC student.  Provides  
          that these students may be reported as full-time equivalent  
          students for purposes of state apportionment.
          
          EXISTING LAW:  

          1)Establishes uniform residency requirements for the purposes of  
            determining the amount of fees to be paid by students  
            attending public institutions of higher education in  
            California and requires CCC districts, California State  
            University (CSU) and University of California (UC) to charge a  
            tuition fee to nonresident students; and, provides for  
            specified exceptions to residence determination for current  
            and former members of the Armed Forces meeting specified  
            requirements.









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          2)Requires the CCC, CSU, and requests UC, (the higher education  
            "segments") to update and adopt policies no later than July 1,  
            2015, regarding tuition rates for eligible veterans and their  
            eligible dependents to ensure conformity to, and compliance  
            with, the federal Veterans Access, Choice, and Accountability  
            Act of 2014 ("Choice Act", Public Law 113-143) and the  
            requirements of California law.    

          3)Exempts specified California nonresidents from paying  
            nonresident tuition if they attended a California high school  
            for three or more years (or equivalent), graduated from a  
            California high school (or equivalent degree), registered or  
            attended an accredited California higher education institution  
            not before the fall of the 2001-02 academic year, and filed an  
            affidavit, if without lawful immigration status, stating that  
            the student has filed an application to legalize their  
            immigration status or will file such an application as soon as  
            eligible to do so.

          4)Authorizes CCC districts to admit a nonresident student and  
            requires that these students be charged a nonresident tuition  
            fee, with certain specific exemptions, including nonresidents  
            who enroll for six or fewer units; any nonresident who is both  
            a citizen and resident of a foreign country, if the  
            nonresident has demonstrated a financial need for the  
            exemption; and, a special part-time student admitted pursuant  
            to California statutes governing concurrent enrollment of  
            elementary and secondary school pupils;

          5)Requires CCC districts to exempt from the nonresident fee a  
            nonresident student, under specified circumstances, a United  
            States citizen who moved abroad as a result of his/her  
            parent's deportation.  
          
          FISCAL EFFECT:  Unknown.  

          COMMENTS:  Background.  According to the CCC Chancellor's Office  
          (CCCCO), an estimated 1.8 million veterans reside in California,  
          making California's veteran population the largest in the  









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          nation. The CCCCO notes that many of the veterans returning from  
          Iraq and Afghanistan will look to CCC as the most easily  
          accessible and affordable educational option available, and, in  
          fact, approximately 70,000 veterans and active duty service  
          members enrolled at a CCC in 2013-14. According to the CCCCO,  
          this is more than six times the combined number of veterans  
          attending UC and CSU.   

          Federal requirements.  The U.S Department of Veterans Affairs  
          (VA) administers the federal G.I. Bill to provide education and  
          training benefits to eligible veterans and their eligible  
          dependents.  The G.I. Bill specifically states that it will pay  
          all public school in-state tuition and fees.  On August 7, 2014,  
          President Obama signed the Choice Act.  Among the numerous  
          provisions, the law requires public institutions to provide  
          in-state tuition to specified veterans and eligible dependents  
          in order for the institution to remain eligible to receive G.I.  
          Bill education payments.  The following "covered individuals"  
          are eligible for in-state tuition under the Choice Act: 
          ?
          1)A veteran who lives in the state (regardless of formal  
            in-state residence status) in which the higher education  
            institution is located and enrolls within three years of  
            discharge from a period of active duty service of 90 days or  
            more.

          2)A spouse or child using transferred benefits who lives in the  
            state (regardless of formal in-state residence status) in  
            which the higher education institution is located and enrolls  
            within three years of the transferor's discharge from a period  
            of active duty service of 90 days or more.



          3)A spouse or child using benefits under the Marine Gunnery  
            Sergeant John David Fry Scholarship who lives in the state  
            (regardless of formal in-state residence status) in which the  
            higher education institution is located and enrolls within  
            three years of the servicemember's death in the line of duty  
            following a period of active duty service of 90 days or more.









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          California response.  In response to the enactment of the Choice  
          Act, AB 13 (Conway), Chapter 639, Statutes of 2014, required CSU  
          and CCC districts, and requested UC to update and adopt policies  
          no later than July 1, 2015, regarding tuition rates for eligible  
          veterans and their eligible dependents to ensure conformity to,  
          and compliance with, the Choice Act and the requirements of  
          California law.  The Choice Act requires that public  
          institutions either comply with the nonresident tuition/fee  
          waiver or discontinue participation in the GI Bill educational  
          benefits programs.  AB 13 (Conway, 2014) did not explicitly  
          require that the segments adopt policies that ensure continued  
          participation in GI Bill educational benefit programs.   
          Arguably, a segment could conform to AB 13 through discontinuing  
          participation in the federal program.  Committee staff  
          understands, however, it is unlikely this approach would be used  
          to achieve compliance.   
           
           Purpose of this bill.  According to the Author, notwithstanding  
          the enactment of AB 13, CCC districts do not currently have  
          appropriate authority to reduce tuition for nonresident veterans  
          in compliance with federal law.  The author argues, if CCC  
          districts do not comply with the Choice Act not only will they  
          be barred from accepting new students using GI Bill educational  
          benefits, but current students will lose their federal GI Bill  
          educational tuition assistance and housing allowance.

          CCC compliance options.  Committee staff understands that  
          existing law does expressly authorize a CCC district to waive  
          nonresident tuition for an eligible veteran in compliance with  
          the Choice Act.  According to information provided by the CCCCO,  
          at least two CCC districts have taken action to ensure  
          compliance with the Choice Act, but this action may be  
          noncompliant with existing law.  Further, existing law does not  
          authorize a CCC district that chooses to provide nonresident  
          tuition waivers to eligible veterans to report the attendance  
          generated by the veterans for state apportionment funding  
          purposes.  This bill would explicitly require CCC districts to  
          waive nonresident tuition for students using GI Bill educational  
          benefits, and authorizes claiming these students for state  









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          apportionment funding purposes.   
             
          Federal waiver.  According to information provided by the VA,  
          the VA is in the process of developing waiver criteria for  
          States that are actively pursuing changes to comply with the  
          requirements of the Choice Act.  More information regarding the  
          waiver criteria is expected to be released in the coming weeks  
          and will be included in a regulation published in the Federal  
          Register. 
           
           Related legislation.  AB 27 (Chávez) would require CSU, and  
          request UC, exempt nonresident students using GI Bill education  
          benefits from paying nonresident tuition while enrolled as a  
          student of that segment.  AB 27 is pending before the Assembly  
          Higher Education Committee.  

          Recommended amendments.  The Committee may wish to consider the  
          following amendments:

          1)To provide for consistency with the benefit required pursuant  
            to the Choice Act, the Committee may wish to amend Page 3,  
            lines 31 - 32, to read:

            (6) A nonresident student  who is a covered individual as  
            defined pursuant to section 702 of the federal Veterans  
            Access, Choice, and Accountability Act of 2014, Public Law  
            113-143  , who is using, or intending to use GI Bill education  
            benefits while  living in California and  enrolled at a  
            community college.

          2)To allow for the nonresident tuition exemption authorized by  
            this bill to be in effect as soon as possible, the Author has  
            requested to add an urgency clause so that the provisions take  
            effect immediately upon the bill being chaptered.
            
          REGISTERED SUPPORT / OPPOSITION:
          
          Support
          California Community College Chancellor's Office
          California Catholic Conference, Inc.









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          Opposition
          None on File

          Analysis Prepared  
          by:              Laura Metune/HIGHER ED./(916) 319-3960