BILL ANALYSIS Ó AB 13 Page 1 Date of Hearing: March 25, 2015 ASSEMBLY COMMITTEE ON APPROPRIATIONS Jimmy Gomez, Chair AB 13 (Chávez) - As Amended March 4, 2015 ----------------------------------------------------------------- |Policy |Higher Education |Vote:|13 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | |Veterans Affairs | |9 - 0 | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: Yes State Mandated Local Program: YesReimbursable: No SUMMARY: This bill exempts from California Community College (CCC) non-resident student fees those veterans covered under the federal Veterans Access, Choice, and Accountability Act of 2014 AB 13 Page 2 ("Choice Act"), and authorizes community colleges to claim state apportionment funding for these students. FISCAL EFFECT: It is estimated that several hundred nonresident veterans attend the community colleges. For every 100 full-time equivalent students in this cohort, the districts would be able to claim about $470,000 in state apportionment funding (GF-Prop 98). COMMENTS: 1)Background. The VA administers the GI Bill to provide education and training benefits to eligible veterans and their eligible dependents. The GI Bill provides for in-state tuition and fees at public institutions. The federal Choice Act (2014), in part requires public institutions to provide in-state tuition regardless of the residency status of specified veterans and their eligible dependents in order for the institution to remain eligible to receive GI Bill education payments. AB 13 Page 3 In response to the enactment of the Choice Act, AB 13 (Conway)/Chapter 639 of 2014, required the state's segments of higher education 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. The Choice Act in essence requires that public institutions either comply with the nonresident tuition/fee waiver or discontinue participation in the GI Bill educational benefits programs. Since last year's AB 13 did not explicitly require policies to ensure continued participation in GI Bill educational benefit programs, a segment could arguably conform to AB 13 through discontinuing participation in the federal program. Though such an outcome is extremely unlikely, AB 27 (Chavez), an urgency measure also on today's committee agenda, provides clarification that the segments' policies are to ensure continued participation of both resident and non-resident veterans who are eligible for GI Bill benefits. 2)Purpose. This bill makes a conforming amendment, adding those covered under the Choice Act to an existing statute providing for in-state CCC student fees to other specified categories of students. Since these Choice Act students would no longer pay the higher non-resident fees that cover their cost of education, AB 13 also authorizes community college districts to claim these students for state apportionment funding. Analysis Prepared by:Chuck Nicol / APPR. / (916) 319-2081 AB 13 Page 4