BILL ANALYSIS Ó SB 605 Page 1 Date of Hearing: July 15, 2015 ASSEMBLY COMMITTEE ON APPROPRIATIONS Jimmy Gomez, Chair SB 605 (Gaines) - As Amended June 2, 2015 ----------------------------------------------------------------- |Policy |Higher Education |Vote:|12 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- 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 Page 2 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 Page 3 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 SB 605 Page 4 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