BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 947
                                                                  Page  1

          Date of Hearing:   April 21, 2009

                       ASSEMBLY COMMITTEE ON HIGHER EDUCATION
                              Anthony Portantino, Chair
                AB 947 (Brownley) - As Introduced:  February 26, 2009
           
          SUBJECT  :   Community colleges: nonresident tuition: foreign  
          citizens

           SUMMARY  :   Allows California Community College (CCC) districts  
          to charge nonresident students who are United States (U.S.)  
          citizens capital outlay fees as specified in existing law.  

           EXISTING LAW  :

          1)Allows a CCC district to charge a nonresident tuition fee to  
            nonresident students, with certain exceptions, and requires  
            the fee to be set according to a formula that divides the  
            expense of education in the CCC district by the number of  
            full-time equivalent students (FTES) attending the CCC  
            district in the preceding year.

          2)Allows CCC districts to charge a capital outlay fee in  
            addition to the nonresident tuition fee to nonresident  
            students who are both citizens and residents of a foreign  
            country as specified.

           FISCAL EFFECT  :   Unknown

           COMMENTS  :    Background  :  In 1991, existing law was enacted to  
          allow CCC districts to charge nonresident foreign students for  
          capital outlay fees, as follows:

          1)The amount shall not exceed the amount that was spent by the  
            CCC district for capital outlay in the preceding fiscal year  
            divided by the total FTES of the CCC district in the preceding  
            year.

          2)The fee shall not exceed 50% of the nonresident tuition fee.

          3)Exempts from paying the fee any student who can demonstrate  
            economic hardship, as defined by the governing board of the  
            CCC district, or persecution in the country in which the  
            student is a citizen.









                                                                  AB 947
                                                                  Page  2

          4)Requires revenue from the fee to be used for capital outlay,  
            maintenance, and equipment.

          Resident students, including those who pay resident fees under  
          AB 540 (Firebaugh), Chapter 814, Statutes of 2001, are not  
          charged capital outlay fees because they are assumed to have  
          contributed through their payment of state and local taxes.

           Purpose of this bill  :  According to the author, this bill would  
          address an inequity in current law.  Resident students  
          theoretically support capital improvements through their taxes,  
          and current law allows CCC districts to charge foreign students  
          nonresident fees for capital outlay; however, nonresident  
          students who are U.S. citizens do not pay capital outlay fees,  
          even though they use the facilities in the same way as resident  
          and foreign students.  

           Current practice  :  CCC districts are not required to charge a  
          nonresident capital outlay fee; this is a decision that is made  
          by the local CCC governing board.  According to the CCC  
          Chancellor's Office, 35 of the 108 CCC districts charge a  
          capital outlay fee to foreign nonresident students.  The average  
          fee amount is $8 per unit, ranging from $5 per unit to $50 per  
          unit.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          Long Beach City College
          Santa Monica College

           Opposition 
           
          None on file.

           
          Analysis Prepared by  :    Sandra Fried / HIGHER ED. / (916)  
          319-3960