BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 947
                                                                  Page  1

          Date of Hearing:   April 29, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                AB 947 (Brownley) - As Introduced:  February 26, 2009 

          Policy Committee:                              Higher  
          EducationVote:7-2

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This bill allows community college districts to charge a capital  
          outlay fee, in addition to nonresident tuition fees, to  
          nonresident students who are United State citizens.

           FISCAL EFFECT  

          Unknown additional revenue to those districts that elect to  
          charge a capital outlay fee to nonresident students who are U.S.  
          citizens.

          (According to the Chancellor's Office of the California  
          Community Colleges, 35 of the 108 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.)

           COMMENTS  

           1)Background  .  Current law allows districts to charge a capital  
            outlay fee, in addition to the nonresident tuition fee, to  
            nonresident community college students who are both citizens  
            and residents of a foreign country.  The amount charged is not  
            to exceed the amount spent by the district for capital outlay  
            in the preceding fiscal year divided by the total full-time  
            equivalent students in the district for that year.  The fee  
            cannot exceed 50% of the nonresident tuition fee, and the  
            resulting revenues must be used for capital outlay,  
            maintenance, and equipment.  Resident students are not charged  
            capital outlay fees because it is assumed that they and their  
            families have already contributed through their payment of  








                                                                  AB 947
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            state and local taxes.

           2)Purpose  .  The author believes this bill addresses an inequity  
            in current law, in that while foreign students can be charged  
            the capital outlay fee, the author believes that nonresident  
            students who are U.S. citizens should also be subject to the  
            fee.  

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081