BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     SB 605  


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          Date of Hearing:  July 15, 2015


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                                 Jimmy Gomez, Chair


          SB 605  
          (Gaines) - As Amended June 2, 2015


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          Urgency:  No  State Mandated Local Program:  YesReimbursable:   
          No


          SUMMARY:


          This bill, as proposed to be amended, until July 1, 2022,  
          exempts persons in specified communities within the State of  
          Nevada (in the Lake Tahoe basin) from paying non-resident fees  








                                                                     SB 605  


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          if they attend Lake Tahoe Community College. Specifically, this  
          bill:


          1)Limits the exemption to 200 students in any academic year and  
            authorizes the Lake Tahoe Community College District (LTCCD)  
            to claim these students as resident full-time equivalent  
            students (FTES) for state apportionment purposes.



          2)Requires any of the non-resident students reported as resident  
            FTES for apportionment purposes to pay a per unit fee,  
            consistent with current law, which is three times the fee  
            amount established for residents.



          3)Requires the governing board of the LTCCD to adopt rules for  
            determining a student's residence classification, including  
            procedures to appeal and review such determinations.



          4)Makes the above provisions operative only if, by July 1, 2021:

             a)   The California Community College Board of Governors  
               enters into an interstate attendance agreement with the  
               Nevada System of Higher Education; and, 

             b)   The agreement provides reciprocal rights to California  
               residents attending Western Nevada College that reasonably  
               conform to the benefits conferred upon Nevada residents by  
               the provisions of this measure.



          FISCAL EFFECT:









                                                                     SB 605  


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          Additional General Fund (Prop 98) costs of about $113,000  
          annually. This assumes 200 Nevada residents are enrolled and  
          equates to 80 FTES--the same ratio of enrollment/FTES as current  
          LTCCD enrollment. This amount of FTES would generate $378,000 of  
          state apportionment funding (at the 2015-16 per FTES credit  
          rate) and $265,000 in fee revenue, for a net Prop 98 cost of  
          $113,000.


          COMMENTS:


          1)Background. Current law authorizes a community college  
            district (CCD) to admit nonresident students, who are charged  
            a tuition fee three times the amount of the fee established  
            for in-state resident students, and, prohibits nonresident  
            students from being reported as FTES for state apportionment  
            purposes, except where: a) the CCD has less than 1,500 FTES  
            and is within 10 miles of another state and has a reciprocity  
            agreement with that state, or b) if a CCD has between 1,501  
            and 3,000 FTES and is within 10 miles of another state and has  
            a reciprocity agreement with that state, the district can  
            claim up to 100 FTES for state apportionment purposes.


          2)Purpose. According to the author, "Current law does not  
            recognize the seamless, regional economy that is the Lake  
            Tahoe Basin, and works against sustainable prosperity on the  
            California side by choking off educational opportunities for  
            students who live on the Nevada side."  The author contends  
            making LTCC more affordable to a limited number of Nevada  
            students who live close to the college will benefit the  
            region's economy.


            The LTCCD is a district with more than 1,500 but less than  
            3,001 FTES and is less than 10 miles from the State of Nevada.  
             Historically, LTCCD enrolled Nevada residents and exempted  








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            them from nonresident tuition fees under an interstate  
            attendance agreement known as a "Good Neighbor Policy (GNP)."   
            However, on September 1, 2011, the State of Nevada terminated  
            this agreement.


            Last month, however, legislation enacted in Nevada encourages  
            the Board of Regents of the University of Nevada to enter into  
            a reciprocal agreement with the State of California in order  
            to authorize waivers of nonresident tuition to certain  
            residents of the Lake Tahoe Basin. According to the LTCCD, the  
            Chancellor of the Nevada System of Higher Education has agreed  
            to negotiate a GNP with the State of California, if SB 605 is  
            enacted. The provisions of SB 605 would only be operative with  
            such an agreement.

          3)Amendment. Since this legislation is requested by the  
            district, the amendment adds a standard mandate disclaimer to  
            avoid any state exposure to reimburse the district for the  
            district's duties under the bill. 

          Analysis Prepared by:Chuck Nicol / APPR. / (916)  
          319-2081