BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     SB 605


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          SENATE THIRD READING


          SB  
          605 (Gaines)


          As Amended  July 16, 2015


          Majority vote


          SENATE VOTE:  39-0


           ------------------------------------------------------------------ 
          |Committee       |Votes|Ayes                  |Noes                |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Higher          |12-0 |Medina, Baker, Bloom, |                    |
          |Education       |     |Chávez, Harper,       |                    |
          |                |     |Irwin, Jones-Sawyer,  |                    |
          |                |     |Levine, Linder, Low,  |                    |
          |                |     |Santiago, Williams    |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Appropriations  |15-1 |Gomez, Bigelow,       |Weber               |
          |                |     |Bloom, Bonta,         |                    |
          |                |     |Calderon, Chang,      |                    |
          |                |     |Daly, Eggman,         |                    |
          |                |     |Gallagher,            |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |                |     |Eduardo Garcia,       |                    |
          |                |     |Jones, Quirk, Rendon, |                    |
          |                |     |Wagner, Wood          |                    |








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          SUMMARY:  Exempts persons residing in specified communities in  
          the State of Nevada from paying non-resident tuition fees if  
          they attend the one California Community College (CCC) within  
          the Lake Tahoe Community College (LTCC) District (LTCCD).   
          Specifically, this bill:  


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


             a)   Incline Village;
             b)   Kingsbury;


             c)   Round Hill;


             d)   Skyland;


             e)   Stateline; and,


             f)   Zephyr Cove.


          2)Deems a student to have residence in one of the communities,  
            as specified above, if he/she lived in said community for more  
            than one year immediately prior to seeking the fee exemption.










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          3)Requires the governing board of LTCCD to adopt rules and  
            regulations for determining a student's residence  
            classification and for establishing procedures to appeal and  
            review this determination.


          4)Authorizes LTCCD to report the non-resident students who are  
            exempt from paying non-resident fees, as specified, as  
            resident full-time equivalent students (FTES) for state  
            apportionment purposes.


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


          6)Specifies that no reimbursement is required by this act  
            pursuant to California Constitution Article XIII B, Section 6.


          7)Sunsets these provisions on July 1, 2022.


          8)Makes the provisions of this measure operative only if, by  
            July 1, 2021, the following occurs:


             a)   The CCC Board of Governors (BOG) 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.


          9)Requires the CCC Chancellor to promptly post notice of the  








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            interstate attendance agreement on the CCC Internet Web site.
          EXISTING LAW:  


          1)Authorizes the CCC BOG 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 Section 66801).


          2)Authorizes a community college district (CCD) to admit  
            nonresident students; requires that said students be charged a  
            tuition fee that, as of July 1, 2013, is three times the  
            amount of the fee established for in-state resident students,  
            with certain specified exemptions; 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, they can claim up to  
            100 FTES for state apportionment purposes (Education Code  
            Section 76140).


          FISCAL EFFECT:  According to the Assembly Appropriations  
          Committee, 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:  Need for the measure.  According to the author,  








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          "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 that by making LTCC more affordable to a limited  
          number of Nevada students who live close to the college,  
          "California can better serve more students who are seeking to  
          improve their academic or career skills and ultimately  
          contribute to the economic and social health of the region.


          Lake Tahoe Community College District (LTCCD).  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.  However, in order  
          to qualify for the exemption provided by Education Code Section  
          76140(i), there must be a reciprocity agreement between  
          California and Nevada governing student attendance and fees. 


          LTCCD lies on the border of Nevada.  Populations on both sides  
          of the border are closely integrated in various ways, including  
          education.  Historically, LTCCD enrolled Nevada residents and  
          exempted them from nonresident tuition fees under an interstate  
          agreement known as a "Good Neighbor Policy (GNP)."  However, on  
          September 1, 2011, the State of Nevada terminated this  
          long-standing interstate attendance agreement with the CCC BOG.   
          Thus, since 2011, there has not been a statewide agreement  
          between Nevada and California regarding community college  
          attendance and tuition. 


          Western Interstate Commission for Higher Education (WICHE).   
          California and Nevada, along with a number of other states,  
          participate in WICHE.  WICHE oversees three student reciprocal  
          exchange programs allowing students to attend out of state  
          universities at a reduced rate.  However, the CCC system is not  
          participants in the Western Undergraduate Exchange, the WICHE  
          exchange program serving undergraduates.  









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          Reciprocity agreement.  Reciprocity agreements allow the flow of  
          tangible economic and educational benefits to citizens of  
          California and Nevada.   The absence of a GNP or reciprocity  
          agreement shifts the total burden of paying for these benefits  
          to California residents. 


          According to the CCC Chancellor's Office (CCCCO), the Tahoe  
          Basin is a single economy; "divided by a political boundary"  
          that has little meaning to the people in the region.  Many  
          people in the region live in one state and work in the other.   
          The CCCCO contends that for many Nevada residents, crossing the  
          state line to attend LTCC, which is situated 3.3 miles from the  
          California/Nevada border, is the most efficient means of  
          completing their college education.  To note, according to the  
          LTCCD, the next nearest public institution of higher education  
          is 25 miles away in Nevada; an hour drive through mountainous  
          terrain or basically impossible in severe winter weather  
          conditions.


          Additionally, Nevada SB 414 (Settelmeyer), (Chapter 380), which  
          was signed into law on June 5, 2015, 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 this measure is enacted into  
          law.


          To note, the provisions of this bill become operative only if,  
          by July 1, 2021, the appropriate entities enter into a  
          reciprocity agreement and residents of both states benefit from  
          the agreement.










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          Analysis Prepared by:                                             
          Jeanice Warden / HIGHER ED. / (916) 319-3960  FN: 0001331