BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON EDUCATION
                              Senator Carol Liu, Chair
                                2015 - 2016  Regular 

          Bill No:             SB 605             
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          |Author:    |Gaines                                               |
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          |Version:   |February 27, 2015                      Hearing Date: |
          |           |    April 22, 2015                                   |
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          |Urgency:   |No                     |Fiscal:     |Yes             |
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          |Consultant:|Kathleen Chavira                                     |
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          Subject:  Community colleges:  exemption from non-resident  
          tuition fee:  Lake Tahoe ????..Community College District

            SUMMARY
          
          This bill, until July 1, 2022; 

             1.   Exempts up to 200 students in any academic year from  
               paying non-resident tuition fees if they attend the Lake  
               Tahoe Community College (LTCC) and reside in specified  
               communities in the State of Nevada, and
           
             2.   Permits the LTCC to count these persons as resident  
               full-time equivalent students (FTES) for purposes of  
               determining California apportionment funding. 

          The bill makes these provisions contingent upon a determination  
          by the Chancellor of the California Community Colleges that the  
          State of Nevada has enacted a statute providing reasonably  
          conforming reciprocal rights to California residents attending  
          Nevada colleges.

            BACKGROUND
          
          Current law authorizes a community college district (CCD) to  
          admit non-resident students and requires that these students be  
          charged a tuition fee that is twice the amount of the fee  
          established for in-state resident students, with certain  
          specified exemptions.  State statute prescribes a formula for  
          the calculation of the non-resident fee. Beginning July 1, 2013,  







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          state law requires the non-resident tuition fee be increased to  
          a level that is three times the amount of the fee established  
          for in-state resident students. 

          Current law prohibits non-resident students from being reported  
          as FTES for state apportionment purposes, except where (1) the  
          CCD has less than 1500 FTES and is within 10 miles of another  
          state and has a reciprocity agreement with that state, or (2) if  
          a CCD has between 1501 and 3000 FTES and is within 10 miles of  
          another state and has a reciprocity agreement with that state,  
          they can claim up to 100 FTES for state apportionment purposes.  
          (Education Code § 76140)

          Existing law authorizes the Board of Governors of the CCC to  
          enter into an interstate attendance agreement with any statewide  
          pubic agency of another state that is responsible for public  
          institutions of postsecondary education providing the first two 

          years of college instruction, and that is an agency of a state  
          that is a member of Western Interstate Commission for Higher  
          Education (WICHE).  
          (Education Code § 66801)

            ANALYSIS
          
          This bill exempts persons residing in specified communities in  
          the State of Nevada from paying non-resident tuition fees if  
          they attend the Lake Tahoe Community College (LTCC).    More  
          specifically, it:

          1.   Exempts up to 200 students in any academic year who attend  
               Lake Tahoe Community College (LTCC) from being charged  
               non-resident student tuition fees if they reside in one of  
               the following communities in Nevada:

               A.        Incline Village.

               B.        Kingsbury.

               C.        Round Hill.

               D.        Skyland.

               E.        Stateline.








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               F.        Zephyr Cove.

          2.   Deems a student to have residence in one of the communities  
               listed above if they lived in that community for more than  
               one year immediately prior to seeking the fee exemption.

          3.   Requires the LTCC to adopt rules and regulations for  
               determining a student's residence classification and for  
               establishing procedures to appeal and review this  
               determination.  

          4.   Authorizes the LTCC to report the non-resident students who  
               are exempt from paying non-resident fees pursuant to the  
               bill's provisions as resident full-time equivalent students  
               (FTES) for state apportionment purposes.

          5.   Sunsets these provisions on July 1, 2022.

          STAFF COMMENTS
          
          1.   Need for the bill.  According to the author, this bill is  
               intended to respond to the concerns raised regarding  
               similar legislation (introduced in prior sessions) to  
               ensure that Nevada students residing in close proximity to  
               California can attend California community colleges without  
               being compelled to pay non-resident tuition.  This bill,  
               unlike the prior bill, establishes a 6 year pilot program,  
               limits its provisions to Lake Tahoe Community College and  
               specified Nevada communities, caps the total number of  
               students that may be exempted from non-resident tuition,  
               and makes the pilot program contingent upon California  
               residents being provided reciprocal rights by the State of  
               Nevada.

          2.   Fee changes effective July 1, 2013.  According to the  
               Senate Budget Committee, as part of the 2012 Budget Act,  
               the State changed the level of non-resident fees to $138  
               per unit (three times the amount of California resident  
               student fee of $46 per unit).  By establishing neighboring  
               state student fees at a multiple of the current California  
               resident student fee, the new fee would allow neighboring  
               student fees to adjust in concert with any future  
               adjustments to resident student fees.  The Budget Committee  








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               indicated this fee level would be approximately midway  
               between Oregon, Nevada, and Arizona resident student fees,  
               that range in the mid-$70 per unit, and California  
               non-resident student fees, that range around $200 per unit.  
                

               As of March 2013, the State Chancellor's office reported  
               that statewide there were 11,300 unfunded full-time  
               equivalent students (FTES), students that attended a  
               California Community College (CCC), but where the state did  
               not provide funding.  The Lake Tahoe Community College  
               reported zero unfunded FTES.  Generally, CCCs in declining  
               enrollment enjoy a one-year funding grace period from the  
               decline and, after that; the unused FTES is redistributed  
               within the community college system.  
          
          3.   Reciprocity, a mutual exchange of interests, no longer  
               exists with Nevada.  According to the Legislative Analyst  
               Office, in August 2011, the State of Nevada terminated the  
               "Good Neighbor" tuition agreement that allowed California  
               students from designated counties to attend Nevada colleges  
               at significantly reduced non-resident tuition rates.  Under  
               this agreement, Nevada students were also able to enroll in  
               the California Community Colleges (specifically, Lassen,  
               Feather River, Lake Tahoe, Palo Verde, Siskiyou and  
               Barstow) without having to pay full non-resident tuition.  
               
               Effective, November 2011, California students enrolling for  
               the first time in Nevada colleges were charged the full  
               non-resident tuition and all the California Community  
               Colleges were required to charge non-resident tuition for  
               Nevada residents enrolling for the first time in  
               California, effectively ending the ability of the  
               California Community Colleges (CCC) to provide exemptions  
               for Nevada students. From 1992 through 2011, California and  
               Nevada had a "Good Neighbor" agreement (reciprocity) in  
               place.

               Reciprocity agreements, allow the flow of tangible economic  
               and educational benefits to citizens of both states. The  
               absence of a "good neighbor" or reciprocity agreement would  
               shift the total burden of paying for these benefits to  
               California residents. 









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          4.   Related Nevada activity.   In March 2015, the Nevada  
               legislature introduced 
               SB 414 (Setelmayer) which encourages the Regents of the  
               University of Nevada to authorize waivers of non-resident  
               tuition to certain residents of the Lake Tahoe Basin.   
               Notwithstanding the proposed legislation, the setting of  
               fees and tuition, including general policies, is under the  
               jurisdiction of the Nevada Higher Education System (NHES)  
               Board of Regents in Nevada. According to the Chancellor of  
               the NHES Board of Regents, in March 2014 the Board adopted  
               a policy that authorizes an individual campus to bring  
               forth a tuition discount program if it chooses. Title 4,  
               Chapter 17, Section 13 establishes the following policy  
               regarding tuition or registration fee discounts:

               Nevada Higher Education System (NHES) institutions may  
               bring forward for Board approval tuition and/or  
               registration fee discounts. Proposals for such discounts  
               must be accompanied by documentation justifying the  
               discount based on the goals of the institution and any  
               related market considerations, including the ability to  
               compete with other non-NSHE institutions. Institutions may  
               be required to report periodically on approved tuition or  
               registration fee discounts upon request of the Chancellor  
               or the Board.

          5.   Misplaced authority.  This bill makes the pilot program  
               contingent upon a determination by the Chancellor's office  
               that the State of Nevada has enacted statute providing  
               reciprocal rights to California residents attending Nevada  
               colleges.  Current law authorizes the Board of Governors  
               (BOG) to enter into interstate attendance agreements and,  
               consistent with this authority, the BOG entered into an  
               agreement with the State of Oregon acting by and through  
               the State Board of Higher Education, on behalf of the  
               Oregon University System. According to the author, it is  
               the intent of this bill to establish authority, on a pilot  
               basis for an interstate attendance agreement between Lake  
               Tahoe Community College and Western Nevada College.

               Staff recommends the bill be amended in Section 5 to make  
               the bill's provisions contingent upon the Board of  
               Governors having entered into an interstate attendance  
               agreement with the Nevada System of Higher Education, prior  








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               to July 1, 2021 and consistent with the requirements of  
               66801(a), that 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. 

            SUPPORT
          
          Heavenly Lake Tahoe
          Lake Tahoe Community College District
          Lake Tahoe Regional Fire Chiefs Association
          Lake Tahoe South Shore Chamber of Commerce
          Meeks Bay Fire Protection District

            OPPOSITION
           
           None received.
                                      -- END --