BILL ANALYSIS                                                                                                                                                                                                    Ó




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          |SENATE RULES COMMITTEE            |                        SB 605|
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                                UNFINISHED BUSINESS 


          Bill No:  SB 605
          Author:   Gaines (R)
          Amended:  7/16/15  
          Vote:     21  

           SENATE EDUCATION COMMITTEE:  9-0, 4/22/15
           AYES:  Liu, Runner, Block, Hancock, Leyva, Mendoza, Monning,  
            Pan, Vidak

           SENATE APPROPRIATIONS COMMITTEE:  7-0, 5/28/15
           AYES:  Lara, Bates, Beall, Hill, Leyva, Mendoza, Nielsen

           SENATE FLOOR:  39-0, 6/4/15
           AYES:  Allen, Anderson, Bates, Beall, Berryhill, Block,  
            Cannella, De León, Fuller, Gaines, Galgiani, Glazer, Hall,  
            Hancock, Hernandez, Hertzberg, Hill, Huff, Jackson, Lara,  
            Leno, Leyva, Liu, McGuire, Mendoza, Mitchell, Monning,  
            Moorlach, Morrell, Nguyen, Nielsen, Pan, Pavley, Roth, Runner,  
            Stone, Vidak, Wieckowski, Wolk
           NO VOTE RECORDED:  Hueso

           ASSEMBLY FLOOR:  76-4, 9/9/15 - See last page for vote

           SUBJECT:   Community colleges:  exemption from nonresident  
                     tuition fee:  Lake Tahoe Community College District


          SOURCE:    Author

          DIGEST:   This bill, until July 1, 2022; (1)exempts up to 200  
          students in any academic year from paying non-resident 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  








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          California apportionment funding.  This bill makes these  
          provisions contingent upon the Board of Governors of the  
          California Community Colleges (CCC) entering into an interstate  
          attendance agreement with the Nevada System of Higher Education  
          providing reciprocal rights to California residents attending  
          Western Nevada College that reasonably conform to the benefits  
          extended to Nevada residents by this bill's provisions.

          Assembly Amendments declare that no reimbursement for mandated  
          costs is required by this bill's provisions as the legislative  
          authority established by this bill is being requested by the  
          local district.

          ANALYSIS:                               
          
          Existing law:

          1)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 non-resident fee. Beginning July 1,  
            2013, state law requires the non-resident tuition fee be  
            increased to a level that is three times the amount of the fee  
            established for in-state resident students. 

          2)Prohibits non-resident students from being reported as FTES  
            for state apportionment purposes, except where (a) the CCD has  
            less than 1500 FTES and is within 10 miles of another state  
            and has a reciprocity agreement with that state, or (b) 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,  
            they can claim up to 100 FTES for state apportionment  
            purposes. (Education Code § 76140)

          3)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  








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            Higher Education (WICHE).  (Education Code § 66801)

          This bill exempts persons residing in specified communities in  
          the State of Nevada from paying non-resident tuition fees if  
          they attend the LTCC.  More specifically, it:

          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 Nevada:

             a)   Incline Village.
             b)   Kingsbury.
             c)   Round Hill.
             d)   Skyland.
             e)   Stateline.
             f)   Zephyr Cove.

          2)Deems a student 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.

          3)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.  

          4)Authorizes the LTCC to report the non-resident students who  
            are exempt from paying non-resident fees pursuant to this  
            bill's provisions as resident FTES for state apportionment  
            purposes.

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

          6)Sunsets these provisions on July 1, 2022.

          7)Declares that no reimbursement for mandated costs is required  
            because the only costs that may be incurred by the district  
            are the result of a program for which legislative authority  
            was requested by the district.








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          8)Makes these provisions operative only if, by July 1, 2021:

             a)   The Board of Governors enters into an interstate  
               attendance agreement with the Nevada System of Higher  
               Education.

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

          9)Requires the Chancellor of the CCC to promptly post notice of  
            the interstate attendance agreement on the CCC Internet  
            website.

          Comments
          
          1)Need for the bill.  According to the author, this bill is  
            intended to respond to the concerns raised regarding similar  
            legislation (introduced in prior sessions) to ensure that  
            Nevada students residing in close proximity to California can  
            attend CCCs without being compelled to pay non-resident  
            tuition.  This bill, unlike the prior bill, establishes a  
            six-year pilot program, limits its provisions to Lake Tahoe  
            Community College and specified Nevada communities, caps the  
            total number of students that may be exempted from  
            non-resident tuition, and makes the pilot program contingent  
            upon California residents being provided reciprocal rights by  
            the State of Nevada.

          2)Reciprocity, a mutual exchange of interests, no longer exists  
            with Nevada.  According to the Legislative Analyst Office, in  
            August 2011, the State of Nevada terminated the "Good  
            Neighbor" tuition agreement that allowed California students  
            from designated counties to attend Nevada colleges at  
            significantly reduced non-resident tuition rates.  Under this  
            agreement, Nevada students were also able to enroll in the CCC  
            (specifically, Lassen, Feather River, Lake Tahoe, Palo Verde,  
            Siskiyou and Barstow) without having to pay full non-resident  
            tuition.  









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            Effective, November 2011, California students enrolling for  
            the first time in Nevada colleges were charged the full  
            non-resident tuition and all the CCC were required to charge  
            non-resident tuition for Nevada residents enrolling for the  
            first time in California, effectively ending the ability of  
            the CCC to provide exemptions for Nevada students. From 1992  
            through 2011, California and Nevada had a "Good Neighbor"  
            agreement (reciprocity) in place.

          3)Related Nevada activity.   In March 2015, the Nevada  
            legislature introduced 
          SB 414 (Setelmayer) which encourages the Regents of the  
            University of Nevada to authorize waivers of non-resident  
            tuition to certain residents of the Lake Tahoe Basin.   
            Notwithstanding the proposed legislation, the setting of fees  
            and tuition, including general policies, is under the  
            jurisdiction of the Nevada Higher Education System (NHES)  
            Board of Regents in Nevada. According to the Chancellor of the  
            NHES Board of Regents, in March 2014 the Board adopted a  
            policy that authorizes an individual campus to bring forth a  
            tuition discount program if it chooses. Title 4, Chapter 17,  
            Section 13 establishes the following policy regarding tuition  
            or registration fee discounts:

          NHES institutions may bring forward for Board approval tuition  
          and/or registration fee discounts. Proposals for such discounts  
          must be accompanied by documentation justifying the discount  
          based on the goals of the institution and any related market  
          considerations, including the ability to compete with other  
          non-NSHE institutions. Institutions may be required to report  
          periodically on approved tuition or registration fee discounts  
          upon request of the Chancellor or the Board.

          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   Yes

          According to the Assembly Appropriations Committee, if 200  
          Nevada residents enroll, this bill will result in additional net  
          costs of about $113,000 from the General Fund (Proposition 98)  
          annually. 










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          SUPPORT:   (Verified9/9/15)


          None received


          OPPOSITION:   (Verified9/9/15)


          None received

           ASSEMBLY FLOOR:  76-4, 9/9/15
           AYES:  Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bloom,  
            Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang,  
            Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle,  
            Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina  
            Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gray, Grove,  
            Hadley, Harper, Roger Hernández, Holden, Irwin, Jones,  
            Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low,  
            Maienschein, Mathis, Mayes, Medina, Melendez, Mullin,  
            Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Perea,  
            Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago,  
            Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Wilk,  
            Williams, Wood, Atkins
           NOES:  Gonzalez, Gordon, McCarty, Weber



          Prepared by:Kathleen Chavira / ED. / (916) 651-4105
          9/9/15 19:34:33


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