BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session SB 605 (Gaines) - Community colleges: exemption from nonresident tuition fee: Lake Tahoe Community College District. ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: April 29, 2015 |Policy Vote: ED. 9 - 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: Yes | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: May 18, 2015 |Consultant: Jillian Kissee | | | | ----------------------------------------------------------------- This bill meets the criteria for referral to the Suspense File. Bill Summary: This bill, until July 1, 2022; 1. Exempts up to 200 students in any academic year from paying nonresident 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, by July 1, 2021, the Board of Governors of the California Community Colleges (CCC) entering into an interstate 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, pursuant to this bill. SB 605 (Gaines) Page 1 of ? Fiscal Impact: This bill results in costs to the state of approximately $357,000 Proposition 98 General Fund (net of tuition fee revenue and state apportionment costs). This estimate assumes that 200 students equates to 100 FTES taking 24 semester units per year, and that these students pay the resident tuition rate. 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 nonresident fee. Current law prohibits nonresident 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, it can claim up to 100 FTES for state apportionment purposes. Any nonresident student that falls into these categories and is reported as resident FTES for state apportionment purposes is required to pay a per unit fee that is three times the amount of the fee established for residents. (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. (Education Code § 66801) Proposed Law: This bill exempts persons residing in specified communities in the State of Nevada from paying nonresident tuition fees if they attend the LTCC. More specifically, it: 1. Exempts up to 200 students in any academic year who SB 605 (Gaines) Page 2 of ? attend LTCC from being charged nonresident 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. F. Zephyr Cove. 1. Deems students 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. 2. 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. 3. Authorizes the LTCC to report nonresident students who are exempt from paying nonresident fees pursuant to the bill's provisions as resident full-time equivalent students (FTES) for state apportionment purposes. 4. Sunsets these provisions on July 1, 2022. The bill makes these provisions contingent upon, by July 1, 2021, the Board of Governors of the California Community Colleges enters into an interstate 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, pursuant to this bill. -- END -- SB 605 (Gaines) Page 3 of ?