Amended in Assembly April 22, 2015

California Legislature—2015–16 Regular Session

Assembly Bill No. 1370

Introduced by Assembly begin delete Member Medina end delete begin insert Members Medina and Beth  end insert begin insert Gaines end insert

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 amended, 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 begin delete total nonresident charges imposed by each of their comparison institutions, as identified by the California Postsecondary Education Commission or a successor agency. end delete begin insert marginal cost of instruction for that campus. end insert The bill would also require that begin delete an unspecified percentage end delete begin insert not less than 50% end insert of the begin delete revenues end delete begin insert revenues, in excess of the marginal cost of instruction, end insert generated from begin insert undergraduate end insert nonresident enrollment be directed to begin delete financial aid programs for end delete begin insert fund increased enrollment for undergraduate end insert resident students.

The bill would prohibit the number of begin insert undergraduate end insert nonresident students enrolled at any campus of the University of California from exceeding 10% of total begin insert undergraduate end insert student enrollment. The bill would further prohibit begin insert , from March 1, 2016, to July 1, 2021, inclusive, end insert any campus of the University of California at which begin insert undergraduate end insert nonresident enrollment exceeds 10% of total begin insert undergraduate end insert student enrollment as of begin delete the operative date of the bill end delete begin insert March 1, 2016, end insert from increasing the enrollment of begin insert undergraduate end insert nonresident students from the begin delete amount end delete begin insert percentage end insert of those students enrolled at that campus on begin delete that date. end delete begin insert March 1, 2016. end insert The bill would require the University of California to annually publish a report including specified data about the revenues generated by begin insert undergraduate end insert nonresident student enrollment, and to provide for equitable distribution of those revenues among the campuses.

begin delete

The bill would declare that,

end delete

begin insert This bill, end insert notwithstanding the existing provision that would make this bill applicable to the University of California only upon the action of the regents, begin insert and notwithstanding any other law, would prohibit the regents from allocating any state funds appropriated to the University of California in the annual Budget Act or another statute to end insert a campus of the University of California begin delete would not be deemed to be authorized by the State of California for purposes of its students receiving federal financial aid end delete 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.  

In accordance with Section 68052, the governing board
or district governing board shall 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) 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 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 begin delete level end delete 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 begin delete use 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. end delete begin insert use shall take into
consideration both of the following factors: end insert

begin insert

(A) For each campus of the University of California and the
California State University, the total nonresident charges imposed
by each of their comparison institutions, as identified by the
California Postsecondary Education Commission or a successor
agency.

end insert begin insert

(B) The full average cost of instruction for that segment.

end insert

(3) Under no circumstances shall the level of nonresident tuition
plus required student fees charged by a campus fall below begin delete the total
nonresident charges imposed by its comparison institutions, as
identified by the California Postsecondary Education Commission
or a successor agency. end delete begin insert the marginal cost of instruction for that
campus. end insert

(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 predictable by providing nonresident
students with an appropriate notice of tuition increases.

(5)  begin delete __ percent of the revenues generated from end delete begin insert An amount not
less than 50 percent of the revenues in excess of the marginal cost
of instruction, generated from undergraduate end insert nonresident
enrollment begin insert , end insert shall be directed to begin delete financial aid programs for end delete begin insert fund
increased enrollment of undergraduate end insert resident students.

(c) No provision of this section shall be applicable to the
California Community Colleges.

SEC. 3.  

Section 68052.1 is added to the Education Code, to
read:

68052.1.  

(a)  begin delete The end delete begin insert (1) end insert begin insert   end insert begin insert Except as provided in paragraph (2),
the end insert number of begin insert undergraduate end insert nonresident students enrolled at any
campus of the University of California shall not exceed 10 percent
of total begin insert undergraduate end insert student enrollment. begin delete Any end delete

begin insert (2) end insert begin insert   end insert begin insert From March 1, 2016, to July 1, 2021, inclusive, any end insert campus
of the University of California at which begin insert undergraduate end insert nonresident
enrollment exceeds 10 percent of total student enrollment as of
begin delete the operative date of the act that adds this section end delete begin insert March 1, 2016, end insert
is prohibited from increasing the enrollment of begin insert undergraduate end insert
nonresident students from the begin delete amount end delete begin insert percentage end insert of those students
enrolled at that campus on begin delete that date. end delete begin insert March 1, 2016. end insert

(b) The University of California shall establish a revenue sharing
agreement pursuant to which revenues generated by begin insert undergraduate end insert
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:

begin insert

(1) The undergraduate nonresident tuition and fee level
established at each campus.

end insert begin delete

(1)

end delete

begin insert (2) end insert  The amount of revenues generated by begin insert undergraduate end insert
nonresident enrollment at each campus.

begin delete

(2)

end delete

begin insert ( end insert begin insert 3) end insert  The method by which these revenues were distributed among
the various campuses of the university.

begin delete

(3)

end delete

begin insert ( end insert begin insert 4) end insert  For each campus, the purposes for which these revenues
were begin delete expended. end delete begin insert expended, including, but not limited to, the number
of California resident undergraduate students admitted pursuant
to paragraph (5) of subdivision (b) of Section 68052. end insert

SEC. 4.  

Section 68052.2 is added to the Education Code, to
read:

68052.2.  

Notwithstanding Section begin delete 68134, end delete begin insert 68134 or any other
law, the Regents of the University of California shall not allocate
any state funds appropriated to the University of California in the
annual Budget Act or another statute to end insert a campus of the University
of California begin delete shall not be deemed to be authorized by the State of
California for purposes of Title IV of the federal Higher Education
Act end delete unless the campus is in compliance with this article.