Amended in Assembly July 16, 2015

Amended in Senate June 2, 2015

Amended in Senate April 29, 2015

Senate Bill No. 605

Introduced by Senator Gaines

February 27, 2015

An act to amend, repeal, and add Section 76140 of the Education Code, relating to community colleges.

LEGISLATIVE COUNSEL’S DIGEST

SB 605, as amended, Gaines. Community colleges: exemption from nonresident tuition fee: Lake Tahoe Community College District.

(1) Existing law establishes the California Community Colleges, under the administration of the Board of Governors of the California Community Colleges, as one of the segments of public postsecondary education in this state. Existing law establishes community college districts throughout the state, including the Lake Tahoe Community College District, and authorizes them to operate campuses and provide instruction to students. Existing law authorizes community college districts to admit nonresident students, and requires that nonresident students be charged a nonresident tuition fee unless an exemption is applicable.

This bill would exempt from the nonresident tuition fee students who attend Lake Tahoe Community College and who have residence in one of several designated communities in Nevada, as provided. The bill would require the governing board of the Lake Tahoe Community College District to adopt rules and regulations for determining a student’s residence classification and for establishing procedures for an appeal and review of the residence classification. The bill would authorize the reporting, for apportionment purposes, of the attendance of nonresident students exempted from nonresident tuition under this bill, but would require any nonresident student thus reported for apportionment purposes to pay a per unit fee that is 3 times the amount of the fee established for residents. These provisions would become inoperative on July 1, 2022, and would be repealed on January 1, 2023.

By imposing new duties on the Lake Tahoe Community College District, the bill would create a state-mandated local program.

(2) This bill would make a legislative finding and declaration as to the necessity of a special statute for the Lake Tahoe Community College District with respect to students who reside in nearby communities located in Nevada.

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(3) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

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This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.

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(3) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

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This bill would provide that no reimbursement is required by this act for a specified reason.

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(4) This bill would declare that it would not become operative unless, on or before July 1, 2021, the Board of Governors of the California Community Colleges enters into an interstate attendance agreement with the Nevada System of Higher Education that provides reciprocal rights to California residents attending Western Nevada College that reasonably conform to the benefits conferred upon Nevada residents by this bill.

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

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

SECTION 1.  

Section 76140 of the Education Code is amended
to read:

76140.  

(a) A community college district may admit, and shall
charge a tuition fee to, nonresident students, except that a
community college district may exempt from all or parts of the
fee any person described in paragraph (1), (2), (3), (4), or (6), and
shall exempt from all of the fee any person described in paragraph
(5):

(1) All nonresidents who enroll for six or fewer units.
Exemptions made pursuant to this paragraph shall not be made on
an individual basis.

(2) Any nonresident who is both a citizen and resident of a
foreign country, if the nonresident has demonstrated a financial
need for the exemption. Not more than 10 percent of the
nonresident foreign students attending any community college
district may be so exempted. Exemptions made pursuant to this
paragraph may be made on an individual basis.

(3) (A) A student who, as of August 29, 2005, was enrolled,
or admitted with an intention to enroll, in the fall term of the
2005-06 academic year in a regionally accredited institution of
higher education in Alabama, Louisiana, or Mississippi, and who
could not continue his or her attendance at that institution as a
direct consequence of damage sustained by that institution as a
result of Hurricane Katrina.

(B) The chancellor shall develop guidelines for the
implementation of this paragraph. These guidelines shall include
standards for appropriate documentation of student eligibility to
the extent feasible.

(C) This paragraph shall apply only to the 2005-06 academic
year.

(4) A special part-time student admitted pursuant to Section
76001.

(5) A nonresident student who is a United States citizen who
resides in a foreign country, if that nonresident meets all of the
following requirements:

(A) Demonstrates a financial need for the exemption.

(B) Has a parent or guardian who has been deported or was
permitted to depart voluntarily under the federal Immigration and
Nationality Act in accordance with Section 1229c of Title 8 of the
United States Code. The student shall provide documents from the
United States Citizenship and Immigration Services evidencing
the deportation or voluntary departure of his or her parent or
guardian.

(C) Moved abroad as a result of the deportation or voluntary
departure specified in subparagraph (B).

(D) Lived in California immediately before moving abroad. The
student shall provide information and evidence that demonstrates
the student previously lived in California.

(E) Attended a public or private secondary school, as described
in Sections 52 and 53, in the state for three or more years. The
student shall provide documents that demonstrate his or her
secondary school attendance.

(F) Upon enrollment, will be in his or her first academic year
as a matriculated student in California public higher education, as
that term is defined in subdivision (a) of Section 66010, will be
living in California, and will file an affidavit with the institution
stating that he or she intends to establish residency in California
as soon as possible.

(6) (A) A student who attends Lake Tahoe Community College
and who has residence, pursuant to subparagraph (B), in one of
the following communities in Nevada:

(i) Incline Village.

(ii) Kingsbury.

(iii) Round Hill.

(iv) Skyland.

(v) Stateline.

(vi) Zephyr Cove.

(B) Residence shall be determined pursuant to Article 5
(commencing with Section 68060) of Chapter 1 of Part 41 of
Division 5. A person shall have residence in one of the
communities listed in subparagraph (A) if the person has lived in
the community for more than one year immediately prior to seeking
the fee exemption pursuant to this paragraph.

(C) The governing board of the Lake Tahoe Community College
District shall adopt rules and regulations for determining a student’s
residence classification and for establishing procedures for an
appeal and review of the residence classification. No more than
200 students shall be exempted from payment of a nonresident
tuition fee under this paragraph in any academic year.

(b) A district may contract with a state, a county contiguous to
California, the federal government, or a foreign country, or an
agency thereof, for payment of all or a part of a nonresident
student’s tuition fee.

(c) Nonresident students shall not be reported as full-time
equivalent students (FTES) for state apportionment purposes,
except as provided by subdivision (j) or another statute, in which
case a nonresident tuition fee may not be charged.

(d) The nonresident tuition fee shall be set by the governing
board of each community college district not later than February
1 of each year for the succeeding fiscal year. The governing board
of each community college district shall provide nonresident
students with notice of nonresident tuition fee changes during the
spring term before the fall term in which the change will take
effect. Nonresident tuition fee increases shall be gradual, moderate,
and predictable. The fee may be paid in installments, as determined
by the governing board of the district.

(e) (1) The fee established by the governing board pursuant to
subdivision (d) shall represent for nonresident students enrolled
in 30 semester units or 45 quarter units of credit per fiscal year
one or more of the following:

(A) The amount that was expended by the district for the
expense of education as defined by the California Community
Colleges Budget and Accounting Manual in the preceding fiscal
year increased by the projected percent increase in the United
States Consumer Price Index as determined by the Department of
Finance for the current fiscal year and succeeding fiscal year and
divided by the FTES (including nonresident students) attending
in the district in the preceding fiscal year. However, if for the
district’s preceding fiscal year FTES of all students attending in
the district in noncredit courses is equal to, or greater than, 10
percent of the district’s total FTES attending in the district, the
district may substitute the data for expense of education in grades
13 and 14 and FTES in grades 13 and 14 attending in the district.

(B) The expense of education in the preceding fiscal year of all
districts increased by the projected percent increase in the United
States Consumer Price Index as determined by the Department of
Finance for the fiscal year and succeeding fiscal year and divided
by the FTES (including nonresident students) attending all districts
during the preceding fiscal year. However, if the amount calculated
under this paragraph for the succeeding fiscal year is less than the
amount established for the current fiscal year or for any of the past
four fiscal years, the district may set the nonresident tuition fee at
the greater of the current or any of the past four-year amounts.

(C) An amount not to exceed the fee established by the
governing board of any contiguous district.

(D) An amount not to exceed the amount that was expended by
the district for the expense of education, but in no case less than
the statewide average as set forth in subparagraph (B).

(E) An amount no greater than the average of the nonresident
tuition fees of public community colleges of no less than 12 states
that are comparable to California in cost of living. The
determination of comparable states shall be based on a composite
cost-of-living index as determined by the United States Department
of Labor or a cooperating government agency.

(2) The additional revenue generated by the increased
nonresident tuition permitted under the amendments made to this
subdivision during the 2009-10 Regular Session shall be used to
expand and enhance services to resident students. In no event shall
the admission of nonresident students come at the expense of
resident enrollment.

(f) The governing board of each community college district also
shall adopt a tuition fee per unit of credit for nonresident students
enrolled in more or less than 15 units of credit per term by dividing
the fee determined in subdivision (e) by 30 for colleges operating
on the semester system and 45 for colleges operating on the quarter
system and rounding to the nearest whole dollar. The same rate
shall be uniformly charged nonresident students attending any
terms or sessions maintained by the community college. The rate
charged shall be the rate established for the fiscal year in which
the term or session ends.

(g) Any loss in district revenue generated by the nonresident
tuition fee shall not be offset by additional state funding.

(h) Any district that has fewer than 1,500 FTES and whose
boundary is within 10 miles of another state that has a reciprocity
agreement with California governing student attendance and fees
may exempt students from that state from the mandatory fee
requirement described in subdivision (a) for nonresident students.

(i) Any district that has more than 1,500, but less than 3,001,
FTES and whose boundary is within 10 miles of another state that
has a reciprocity agreement with California governing student
attendance and fees may, in any one fiscal year, exempt up to 100
FTES from that state from the mandatory fee requirement described
in subdivision (a) for nonresident students.

(j) The attendance of nonresident students who are exempted
pursuant to subdivision (h) or (i), or pursuant to paragraph (3), (5),
or (6) of subdivision (a), from the mandatory fee requirement
described in subdivision (a) for nonresident students may be
reported as resident FTES for state apportionment purposes. Any
nonresident student reported as resident FTES for state
apportionment purposes who is exempt pursuant to paragraph (6)
of subdivision (a), or pursuant to subdivision (h) or (i), shall pay
a per unit fee that is three times the amount of the fee established
for residents pursuant to Section 76300. That fee is to be included
in the FTES adjustments described in Section 76300 for purposes
of computing apportionments.

(k) This section shall become inoperative on July 1, 2022, and,
as of January 1, 2023, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2023, deletes or
extends the dates on which it becomes inoperative and is repealed.

SEC. 2.  

Section 76140 is added to the Education Code, to read:

76140.  

(a) A community college district may admit, and shall
charge a tuition fee to, nonresident students, except that a
community college district may exempt from all or parts of the
fee any person described in paragraph (1), (2), (3), or (4), and shall
exempt from all of the fee any person described in paragraph (5):

(1) All nonresidents who enroll for six or fewer units.
Exemptions made pursuant to this paragraph shall not be made on
an individual basis.

(2) Any nonresident who is both a citizen and resident of a
foreign country, if the nonresident has demonstrated a financial
need for the exemption. Not more than 10 percent of the
nonresident foreign students attending any community college
district may be so exempted. Exemptions made pursuant to this
paragraph may be made on an individual basis.

(3) (A) A student who, as of August 29, 2005, was enrolled,
or admitted with an intention to enroll, in the fall term of the
2005-06 academic year in a regionally accredited institution of
higher education in Alabama, Louisiana, or Mississippi, and who
could not continue his or her attendance at that institution as a
direct consequence of damage sustained by that institution as a
result of Hurricane Katrina.

(B) The chancellor shall develop guidelines for the
implementation of this paragraph. These guidelines shall include
standards for appropriate documentation of student eligibility to
the extent feasible.

(C) This paragraph shall apply only to the 2005-06 academic
year.

(4) A special part-time student admitted pursuant to Section
76001.

(5) A nonresident student who is a United States citizen who
resides in a foreign country, if that nonresident meets all of the
following requirements:

(A) Demonstrates a financial need for the exemption.

(B) Has a parent or guardian who has been deported or was
permitted to depart voluntarily under the federal Immigration and
Nationality Act in accordance with Section 1229c of Title 8 of the
United States Code. The student shall provide documents from the
United States Citizenship and Immigration Services evidencing
the deportation or voluntary departure of his or her parent or
guardian.

(C) Moved abroad as a result of the deportation or voluntary
departure specified in subparagraph (B).

(D) Lived in California immediately before moving abroad. The
student shall provide information and evidence that demonstrates
the student previously lived in California.

(E) Attended a public or private secondary school, as described
in Sections 52 and 53, in the state for three or more years. The
student shall provide documents that demonstrate his or her
secondary school attendance.

(F) Upon enrollment, will be in his or her first academic year
as a matriculated student in California public higher education, as
that term is defined in subdivision (a) of Section 66010, will be
living in California, and will file an affidavit with the institution
stating that he or she intends to establish residency in California
as soon as possible.

(b) A district may contract with a state, a county contiguous to
California, the federal government, or a foreign country, or an
agency thereof, for payment of all or a part of a nonresident
student’s tuition fee.

(c) Nonresident students shall not be reported as full-time
equivalent students (FTES) for state apportionment purposes,
except as provided by subdivision (j) or another statute, in which
case a nonresident tuition fee may not be charged.

(d) The nonresident tuition fee shall be set by the governing
board of each community college district not later than February
1 of each year for the succeeding fiscal year. The governing board
of each community college district shall provide nonresident
students with notice of nonresident tuition fee changes during the
spring term before the fall term in which the change will take
effect. Nonresident tuition fee increases shall be gradual, moderate,
and predictable. The fee may be paid in installments, as determined
by the governing board of the district.

(e) (1) The fee established by the governing board pursuant to
subdivision (d) shall represent for nonresident students enrolled
in 30 semester units or 45 quarter units of credit per fiscal year
one or more of the following:

(A) The amount that was expended by the district for the
expense of education as defined by the California Community
Colleges Budget and Accounting Manual in the preceding fiscal
year increased by the projected percent increase in the United
States Consumer Price Index as determined by the Department of
Finance for the current fiscal year and succeeding fiscal year and
divided by the FTES (including nonresident students) attending
in the district in the preceding fiscal year. However, if for the
district’s preceding fiscal year FTES of all students attending in
the district in noncredit courses is equal to, or greater than, 10
percent of the district’s total FTES attending in the district, the
district may substitute the data for expense of education in grades
13 and 14 and FTES in grades 13 and 14 attending in the district.

(B) The expense of education in the preceding fiscal year of all
districts increased by the projected percent increase in the United
States Consumer Price Index as determined by the Department of
Finance for the fiscal year and succeeding fiscal year and divided
by the FTES (including nonresident students) attending all districts
during the preceding fiscal year. However, if the amount calculated
under this paragraph for the succeeding fiscal year is less than the
amount established for the current fiscal year or for any of the past
four fiscal years, the district may set the nonresident tuition fee at
the greater of the current or any of the past four-year amounts.

(C) An amount not to exceed the fee established by the
governing board of any contiguous district.

(D) An amount not to exceed the amount that was expended by
the district for the expense of education, but in no case less than
the statewide average as set forth in subparagraph (B).

(E) An amount no greater than the average of the nonresident
tuition fees of public community colleges of no less than 12 states
that are comparable to California in cost of living. The
determination of comparable states shall be based on a composite
cost-of-living index as determined by the United States Department
of Labor or a cooperating government agency.

(2) The additional revenue generated by the increased
nonresident tuition permitted under the amendments made to this
subdivision during the 2009-10 Regular Session shall be used to
expand and enhance services to resident students. In no event shall
the admission of nonresident students come at the expense of
resident enrollment.

(f) The governing board of each community college district also
shall adopt a tuition fee per unit of credit for nonresident students
enrolled in more or less than 15 units of credit per term by dividing
the fee determined in subdivision (e) by 30 for colleges operating
on the semester system and 45 for colleges operating on the quarter
system and rounding to the nearest whole dollar. The same rate
shall be uniformly charged nonresident students attending any
terms or sessions maintained by the community college. The rate
charged shall be the rate established for the fiscal year in which
the term or session ends.

(g) Any loss in district revenue generated by the nonresident
tuition fee shall not be offset by additional state funding.

(h) Any district that has fewer than 1,500 FTES and whose
boundary is within 10 miles of another state that has a reciprocity
agreement with California governing student attendance and fees
may exempt students from that state from the mandatory fee
requirement described in subdivision (a) for nonresident students.

(i) Any district that has more than 1,500, but less than 3,001,
FTES and whose boundary is within 10 miles of another state that
has a reciprocity agreement with California governing student
attendance and fees may, in any one fiscal year, exempt up to 100
FTES from that state from the mandatory fee requirement described
in subdivision (a) for nonresident students.

(j) The attendance of nonresident students who are exempted
pursuant to subdivision (h) or (i), or pursuant to paragraph (3) or
(5) of subdivision (a), from the mandatory fee requirement
described in subdivision (a) for nonresident students may be
reported as resident FTES for state apportionment purposes. Any
nonresident student reported as resident FTES for state
apportionment purposes pursuant to subdivision (h) or (i) shall
pay a per unit fee that is three times the amount of the fee
established for residents pursuant to Section 76300. That fee is to
be included in the FTES adjustments described in Section 76300
for purposes of computing apportionments.

(k) This section shall become operative on July 1, 2022.

SEC. 3.  

The Legislature finds and declares that a special law
is necessary and that a general law cannot be made applicable
within the meaning of Section 16 of Article IV of the California
Constitution because of the unique circumstances of the Lake
Tahoe Community College District with respect to students who
reside in nearby communities located in Nevada.

SEC. 4.  

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If the Commission on State Mandates determines that
this act contains costs mandated by the state, reimbursement to
local agencies and school districts for those costs shall be made
pursuant to Part 7 (commencing with Section 17500) of Division
4 of Title 2 of the Government Code.

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No reimbursement is required by this act pursuant to Section 6
of Article XIII B of the California Constitution because the only
costs that may be incurred by a local agency or school district are
the result of a program for which legislative authority was
requested by that local agency or school district, within the
meaning of Section 17556 of the Government Code and Section 6
of Article XIII B of the California Constitution.

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SEC. 5.  

This act shall not become operative unless, on or before
July 1, 2021, the Board of Governors of the California Community
Colleges enters into an interstate attendance agreement with the
Nevada System of Higher Education that, in a manner that is
consistent with subdivision (a) of Section 66801 of the Education
Code, provides reciprocal rights to California residents attending
Western Nevada College that reasonably conform to the benefits
conferred upon Nevada residents by Section 1 of this act. The
Chancellor of the California Community Colleges shall promptly
post notice of this interstate attendance agreement on the Internet
Web site of the California Community Colleges.