BILL ANALYSIS Ó AB 1936 Page 1 Date of Hearing: April 12, 2016 ASSEMBLY COMMITTEE ON VETERANS AFFAIRS Jacqui Irwin, Chair AB 1936 (Chávez) - As Introduced February 12, 2016 SUBJECT: Public postsecondary education: residency: dependents of armed forces members SUMMARY: Provides an exemption from nonresident tuition for dependents of members of the Armed Forces, as specified. Specifically, this bill: 1)Provides that if a member of the Armed Forces of the United States stationed in California, whose dependent natural or adopted stepchild, or spouse has been admitted to a public postsecondary institution is thereafter transferred on military orders out of state where the member continues to serve, the student dependent shall not lose his or her resident classification as long as he or she is continuously enrolled. 2)Requests the Regents of the University of California (UC) to establish the aforementioned residency benefits for students enrolled at the UC. 3)Provides for reimbursement to local agencies and school districts for costs associated with this bill, should the AB 1936 Page 2 Commission on State Mandates determine this bill contains state mandated local costs. EXISTING LAW: 1)Provides that each student shall be classified as a resident or nonresident at UC, the California State University (CSU), or the California Community Colleges (CCC). (Education Code Section 68040). 2)Requires a student classified as a nonresident to pay, in addition to other fees required by the institution, nonresident tuition. (EC Sec. 68050). 3)Provides numerous exemptions from nonresident tuition, including for dependents of members of the Armed Forces stationed in California on active duty. Provides that a student in attendance at a public institution that is granted residency status shall retain that residency classification so as long as he or she is continuously enrolled at that institution. (EC Sec. 68074). FISCAL EFFECT: Unknown. COMMENTS: At all three public higher education segments in California, the UC, the CSU, and the CCC, the difference in tuition charged residents vs non-residents is remarkable. With some variation, the cost for non-residents is approximately triple the cost for residents. At UC, the costliest of the three segments, the resident tuition for 2015-16 is $12,192 vs AB 1936 Page 3 $35,070 for non-residents. Setting aside policy arguments about the cost differential between residents and non-residents, for most students and their families, military or not, a potential triple difference in cost will at the very least factor into educational and financial decision-making and planning. Under California law, to qualify for an exemption from nonresident tuition as a dependent child of a member of the military, the service member must be stationed in California on active duty as of the Residence Determination Date. In December of 2015, this committee was contacted by a member of the armed forces regarding the UC nonresident tuition exemption status of his dependent, whom had been accepted to a UC campus. According to the service member, his dependent was granted a nonresident tuition exemption in April 2015 based on his station in California and his orders showing his prospective rotation date of January 2016. The servicemember's orders were changed and he was required to report to his new duty station earlier than anticipated. The UC uses the first day of classes as the Residence Determination Date. As a result of the servicemember not being stationed in California on "active duty" on the Residence Determination Date of the first day of class, the UC campus determined the service member's dependent was no longer eligible for the nonresident exemption. According to documentation provided by the service member, the decision was appealed and, in January of 2016, the UC campus determined that based upon new information and unique circumstances, it would be unreasonable to withhold a military exemption due to the service member's requirement to report prior to the original prospective rotation date. The UC AB 1936 Page 4 campus determined that an exception to UC's policy was appropriate in this case. According to the author, this bill specifies the point at which in-state tuition is granted to a nonresident dependent to be at the time of admission or attendance rather than just attendance. According to the author, applying a dependent's in-state residence classification at the time of admittance rather than just attendance will eliminate the issues that often arise when a member of the Armed Forces is deployed before their dependent attends an institution. Double-Referral: This bill passed out of the Higher Education Committee on Consent. REGISTERED SUPPORT / OPPOSITION: Support American G.I. Forum of California American Legion- Department of California AMVETS- Department of California Military Officers Association- California Council of Chapters National Association of Social Workers - California Chapter AB 1936 Page 5 VFW- Department of California Vietnam Veterans of America, California State Council Opposition None on File. Analysis Prepared by:John Spangler / V.A. / (916) 319-3550