Amended in Assembly June 1, 2015

Amended in Assembly April 22, 2015

California Legislature—2015–16 Regular Session

Assembly Bill No. 1370

Introduced by Assembly Members Medina and Beth Gaines

February 27, 2015

An act to begin delete amend Sections 68051 and 68052 of, and to add Sections 68052.1 and 68052.2 to, end delete begin insert add Section 68052.1 to end insert 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.

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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.

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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.

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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 marginal cost of instruction for that campus. The

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begin insert end insert begin insert This end insert bill would begin delete also end delete require begin delete that end delete begin insert that, on or before the 2018-19 academic year, and each academic year thereafter, end insert not less than 50% of the begin delete revenues, end delete begin insert revenues end insert in excess of the marginal cost of begin delete instruction, end delete begin insert instruction end insert generated from undergraduate nonresident enrollment be directed to fund increased enrollment for undergraduate resident students begin insert at all campuses of the university with undergraduate students end insert .

The bill would prohibit the begin insert total end insert number of undergraduate nonresident students enrolled at begin delete any campus end delete begin insert all of the campuses end insert of the University of California from exceeding begin delete 10% of end delete begin insert the end insert total begin insert number of end insert undergraduate begin delete student enrollment. The bill would further prohibit, from March 1, 2016, to July 1, 2021, inclusive, any campus of the University of California at which undergraduate nonresident enrollment exceeds 10% of total undergraduate student enrollment as of March 1, 2016, from increasing the enrollment of undergraduate nonresident students from the percentage of those students enrolled at that campus on March 1, 2016. end delete begin insert nonresident students enrolled in the 2015-16 academic year. end insert The bill would require the University of California to annually publish a report including specified data about the revenues generated by undergraduate nonresident student begin delete enrollment, and to provide for equitable distribution of those revenues among the campuses end delete begin insert enrollment end insert .

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This bill, notwithstanding the existing provision that would make this bill applicable to the University of California only upon the action of the regents, 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 a campus of the University of California unless the campus is in compliance with this bill.

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Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

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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 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 shall take into consideration both of the following
factors:

(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.

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

(3) Under no circumstances shall the level of nonresident tuition
plus required student fees charged by a campus fall below the
marginal cost of instruction for that campus.

(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) An amount not less than 50 percent of the revenues in excess
of the marginal cost of instruction, generated from undergraduate
nonresident enrollment, shall be directed to fund increased
enrollment of undergraduate resident students.

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

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begin delete SEC. 3. end delete
begin insert SECTION 1. end insert   

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

68052.1.  

(a) begin delete   end delete begin delete (1) end delete begin delete   end delete begin delete Except as provided in paragraph (2), the end delete begin insert   end insert begin insert The
total end insert number of undergraduate nonresident students enrolled at
begin delete any campus end delete begin insert all of the campuses end insert of the University of California
shall not exceed begin delete 10 percent of end delete begin insert the end insert total begin insert number of end insert undergraduate
begin delete student enrollment. end delete begin insert nonresident students enrolled in the 2015-16
academic year. end insert

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(2) From March 1, 2016, to July 1, 2021, inclusive, any campus
of the University of California at which undergraduate nonresident
enrollment exceeds 10 percent of total student enrollment as of
March 1, 2016, is prohibited from increasing the enrollment of
undergraduate nonresident students from the percentage of those
students enrolled at that campus on March 1, 2016.

(b) The University of California shall establish a revenue sharing
agreement pursuant to which revenues generated by undergraduate
nonresident student enrollment are distributed equitably to each
campus of the university.

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(b) On or before the 2018-19 academic year, and each academic
year thereafter, an amount not less than 50 percent of the revenues
in excess of the marginal cost of instruction, generated from
undergraduate nonresident enrollment, shall be directed to fund
increased enrollment of undergraduate resident students at all
campuses of the university with undergraduate students.

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(c) The University of California shall annually publish a begin delete report,
including, end delete begin insert report that includes, end insert but begin insert is end insert not necessarily limited to,
all of the following information:

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

end delete begin delete

(2)

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begin insert (1) end insert  The amount of revenues generated by undergraduate
nonresident enrollment at each campus.

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(3)

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begin insert (2) end insert  The method by which these revenues were distributed among
the various campuses of the university.

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(4)

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begin insert (3) end insert  For each campus, the purposes for which these revenues
were expended, including, but not limited to, the number of
California resident undergraduate students admitted pursuant to
begin delete paragraph (5) of subdivision (b) of Section 68052. end delete begin insert subdivision (b). end insert

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SEC. 4.  

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

68052.2.  

Notwithstanding Section 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 a campus of the University of
California unless the campus is in compliance with this article.

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