BILL ANALYSIS Ó AB 13 Page 1 ASSEMBLY THIRD READING AB 13 (Chávez) As Amended May 28, 2015 2/3 vote. Urgency ------------------------------------------------------------------- |Committee |Votes |Ayes |Noes | | | | | | | | | | | |----------------+------+----------------------+--------------------| |Higher |13-0 |Medina, Baker, Bloom, | | |Education | |Chávez, Harper, | | | | |Irwin, Jones-Sawyer, | | | | |Levine, Linder, Low, | | | | |Santiago, Weber, | | | | |Williams | | | | | | | |----------------+------+----------------------+--------------------| |Veterans |9-0 |Irwin, Mathis, Alejo, | | |Affairs | |Brough, Brown, | | | | |Chávez, Daly, | | | | |Frazier, Salas | | | | | | | |----------------+------+----------------------+--------------------| |Appropriations |17-0 |Gomez, Bigelow, | | | | |Bonta, Calderon, | | | | |Chang, Daly, Eggman, | | | | |Gallagher, | | | | | | | | | | | | | | |Eduardo Garcia, | | AB 13 Page 2 | | |Gordon, Holden, | | | | |Jones, Quirk, Rendon, | | | | |Wagner, Weber, Wood | | | | | | | | | | | | ------------------------------------------------------------------- SUMMARY: Exempts from the California Community College (CCC) nonresident student fees those veterans living in California and covered under the federal Veterans Access, Choice, and Accountability Act of 2014 (Choice Act), and authorizes CCCs to claim state apportionment funding for these students enrolled on or after July 1, 2015. EXISTING LAW: Requires the CCC, California State University, and requests University of California, (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 Choice Act. FISCAL EFFECT: According to the Assembly Appropriations Committee, it is estimated that several hundred nonresident veterans attend CCCs. For every 100 full-time equivalent students in this cohort, the districts would be able to claim about $470,000 in state apportionment funding. COMMENTS: The United States 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 Barack Obama signed the Choice Act. Among the numerous provisions, the law requires public institutions to provide AB 13 Page 3 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. In response to the enactment of the Choice Act, AB 13 (Conway), Chapter 639, Statutes of 2014, required California State University and CCC districts, and requested University of California 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 did not explicitly require that the segments adopt policies that ensure continued participation in GI Bill educational benefit programs. According to the author, notwithstanding the enactment of this bill, this bill is necessary to ensure CCC districts reduce tuition for AB 13 Page 4 nonresident veterans in compliance with the Choice Act and receive state apportionment funding for those veteran students. Analysis Prepared by: Laura Metune / HIGHER ED. / (916) 319-3960 FN: 0000684