BILL NUMBER: AB 1370	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Medina

                        FEBRUARY 27, 2015

   An act to amend Sections 68051 and 68052 of, and to add Sections
68052.1 and 68052.2 to, the Education Code, relating to public
postsecondary education.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1370, as introduced, Medina. Public postsecondary education:
student residency.
   Existing law expresses the intent of the Legislature that the
University of California and the California State University
establish nonresident student tuition policies that are consistent
with their resident student fee policies. Existing law provides that
nonresident student tuition shall be determined by each of these
public postsecondary segments through the adoption of a methodology
that annually establishes the nonresident student tuition rate. These
provisions are applicable to the University of California only if
the Regents of the University of California act, by resolution, to
make them applicable.
   Existing law expresses the intent of the Legislature that the
California Postsecondary Education Commission annually review
specified data with respect to making comparisons between the
California postsecondary educational segments and the postsecondary
educational systems of 7 specified major industrial states. The
commission has not been funded in recent fiscal years.
   This bill would delete the expression of legislative intent
relating to the establishment of nonresident student tuition policies
at the University of California and the California State University
that are consistent with resident student fee policies. The bill
would instead require that nonresident student tuition be determined
by each of these segments through the adoption of a methodology that
annually establishes the nonresident student tuition at each campus
of the segment.
   The bill would require that under no circumstances shall the level
of nonresident tuition plus required student fees charged by a
campus fall below the total nonresident charges imposed by each of
their comparison institutions, as identified by the California
Postsecondary Education Commission or a successor agency. The bill
would also require that an unspecified percentage of the revenues
generated from nonresident enrollment be directed to financial aid
programs for resident students.
   The bill would prohibit the number of nonresident students
enrolled at any campus of the University of California from exceeding
10% of total student enrollment. The bill would further prohibit any
campus of the University of California at which nonresident
enrollment exceeds 10% of total student enrollment as of the
operative date of the bill from increasing the enrollment of
nonresident students from the amount of those students enrolled at
that campus on that date. The bill would require the University of
California to annually publish a report including specified data
about the revenues generated by nonresident student enrollment, and
to provide for equitable distribution of those revenues among the
campuses.
   The bill would declare that, notwithstanding the existing
provision that would make this bill applicable to the University of
California only upon the action of the regents, a campus of the
University of California would not be deemed to be authorized by the
State of California for purposes of its students receiving federal
financial aid unless the campus is in compliance with this bill.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 68051 of the Education Code is amended to read:

   68051.   Unless otherwise provided by law,  
In accordance with Section 68052,  the governing board or
district governing board shall  adopt rules and regulations
relating to the method of calculation of   calculate
 the amount of nonresident tuition, the method of payment, and
the method and amount of refund.
  SEC. 2.  Section 68052 of the Education Code is amended to read:
   68052.  (a)  It is the intent of the Legislature that
California's public institutions of higher education shall establish
nonresident student tuition policies that are consistent with their
resident student fee policies.  Nonresident student tuition
shall be determined by each of the public postsecondary segments
through the adoption of a methodology that annually establishes the
nonresident student tuition  rate. It is further the intent
of the Legislature that, while the public institutions are to be
provided flexibility in establishing their nonresident tuition, under
no circumstances shall the level of nonresident tuition plus
required fees fall below the marginal cost of instruction for that
segment.   rate at each campus of that segment. 
   (b) The following state policies regarding nonresident student
tuition are hereby established:
   (1) Unless otherwise prescribed by statute, an admission fee and
rate of tuition  for each campus,  fixed by each public
postsecondary governing board  ,  shall be required of each
nonresident student. Each public postsecondary education governing
body shall develop its own methodology for establishing the
nonresident tuition level and its annual adjustment level of
nonresident student tuition  at each campus , unless
otherwise prescribed by statute.
   (2) As California's public postsecondary education segments
annually adjust the level of nonresident tuition they charge
out-of-state students, the nonresident tuition methodologies they
develop and use  should take into consideration, at minimum,
the following two factors:   shall be based, at a
minimum, on the total nonresident charges imposed by each of their
comparison institutions, as identified by the California
Postsecondary Education Commission or a successor agency. 

   (A) For the University of California and the California State
University, the total nonresident charges imposed by each of their
public comparison institutions, as identified by the California
Postsecondary Education Commission.  
   (B) The full average cost of instruction of their segment.

   (3)  It is the intent of the Legislature that under
  Under  no circumstances shall  an
institution's   the  level of nonresident tuition
plus required student fees  charged by a campus  fall below
the  marginal cost of instruction for that segment. 
 total nonresident charges imposed by its comparison  
institutions, as identified by the California Postsecondary Education
Commission or a successor agency. 
   (4) The University of California, the California State University,
the Hastings College of the Law, and the California Maritime Academy
should endeavor to ensure that increases in the level of nonresident
tuition are  gradual, moderate, and  predictable by
providing nonresident students with  a minimum of a 10-month
  an appropriate  notice of tuition increases.

   (5) __ percent of the revenues generated from nonresident
enrollment shall be directed to financial aid programs for resident
students. 
   (c) No provision of this section shall be applicable to the
California Community Colleges. 
   (d) In the event that state revenues and expenditures are
substantially imbalanced due to factors unforeseen by the Governor
and the Legislature, including, but not limited to, initiative
measures, natural disasters, or sudden deviations from expected
economic trends, the nonresident student tuition at the University of
California, the California State University, the Hastings College of
the Law, and the California Maritime Academy, shall not be subject
to this section. 
  SEC. 3.  Section 68052.1 is added to the Education Code, to read:
   68052.1.  (a) The number of nonresident students enrolled at any
campus of the University of California shall not exceed 10 percent of
total student enrollment. Any campus of the University of California
at which nonresident enrollment exceeds 10 percent of total student
enrollment as of the operative date of the act that adds this section
is prohibited from increasing the enrollment of nonresident students
from the amount of those students enrolled at that campus on that
date.
   (b) The University of California shall establish a revenue sharing
agreement pursuant to which revenues generated by nonresident
student enrollment are distributed equitably to each campus of the
university.
   (c) The University of California shall annually publish a report,
including, but not necessarily limited to, all of the following
information:
   (1) The amount of revenues generated by nonresident enrollment at
each campus.
   (2) The method by which these revenues were distributed among the
various campuses of the university.
   (3) For each campus, the purposes for which these revenues were
expended.
  SEC. 4.  Section 68052.2 is added to the Education Code, to read:
   68052.2.  Notwithstanding Section 68134, a campus of the
University of California shall not be deemed to be authorized by the
State of California for purposes of Title IV of the federal Higher
Education Act unless the campus is in compliance with this article.