BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      AB 27


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          Date of Hearing:  March 3, 2015


                       ASSEMBLY COMMITTEE ON HIGHER EDUCATION


                                    Medina, Chair


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


          SUBJECT:  Public postsecondary education:  exemption from  
          nonresident tuition
          
          SUMMARY:  Requires the California State University (CSU), and  
          requests the University of California (UC) to exempt from  
          nonresident tuition a nonresident student who is using, or is  
          intending to use, GI Bill educational benefits while enrolled at  
          a CSU or UC.  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 CSU or UC student.  
          
          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 California Community College (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.

          2)Requires the CCC, CSU, and requests UC, (the higher education  









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            "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.

          FISCAL EFFECT:  Unknown.
          
          COMMENTS:  Background.  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  









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            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.

          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, currently the  
          Education Code does not include a waiver to reduce tuition for  
          nonresidents who attend college using G.I. Bill education  
          benefits.  If the segments do not comply with the requirements  
          of the Choice Act, not only will they be barred from accepting  
          new students using G.I. Bill educational benefits, but current  
          students will lose their veterans tuition and housing  
          assistance.  

          UC and CSU compliance.  UC indicates that it is prepared to  
          admit veterans and their dependents per the new federal law by  
          the July 1, 2015 Choice Act deadline. UC reports that it is on  









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          track to identify and document eligibility for new exemptions;  
          and has been fielding inquiries from non-resident undergraduate  
          applicants who have any indication of a link to the military and  
          is reviewing applicants for eligibility under the terms of the  
          federal law.  UC has also updated its webpage to reflect the new  
          eligibility for veterans under the Choice Act.  Committee staff  
          understands that CSU intends to comply with the requirements of  
          the Choice Act.  However, CSU has not yet formally outlined how  
          the segment plans to achieve compliance.  

          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 13 (Chávez) requires a 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 and provides that these students may be reported as  
          full-time equivalent students for purposes of state  
          apportionment.  AB 13 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, to  
            strike lines 19-24, and amend lines 11-18, to read:

            (c)  (1)  Notwithstanding any other law, the California  
            Community Colleges and the California State University shall,  
            and the University of California is requested to, update and  
            adopt policies no later than July 1, 2015, regarding tuition  
            rates for eligible veterans and their eligible dependents to  
            ensure  continued participation in GI Bill educational benefits  
            programs, and  conformity to, and compliance with, the federal  









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            Veterans Access, Choice, and Accountability Act of 2014  
            (Public Law 113-146) and the requirements of this section.   

           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 Catholic Conference, Inc.
          California Community Colleges, Chancellor's Office

          Opposition
          None on File

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