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:
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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