BILL ANALYSIS
SENATE COMMITTEE ON EDUCATION
Gloria Romero, Chair
2009-2010 Regular Session
BILL NO: AB 947
AUTHOR: Brownley
INTRODUCED: February 26, 2009
FISCAL COMM: Yes HEARING DATE: June 17, 2009
URGENCY: No CONSULTANT:Nancy Anton
SUBJECT : Community College nonresident capital outlay fee.
SUMMARY
This bill expands the authority for California Community
College (CCC) districts to charge nonresident students a
tuition capital outlay fee to include nonresident students
who reside in and/or are citizens of the United States.
BACKGROUND
Current law authorizes CCC districts to charge nonresident
students who are both citizens and residents of a foreign
country a "capital outlay fee". Nonresident students who
are either a resident of another state or a US citizen may
not be charged the fee. This fee may not exceed (a) the
amount that was spent by the district for capital outlay in
the preceding fiscal years divided by the total number of
full-time equivalent students in that fiscal year and (b)
50% of the nonresident tuition fee established in statute.
Revenue from this fee is required to be expended only for
capital outlay, maintenance and equipment purposes.
ANALYSIS
This bill deletes the restriction that the nonresident
capital outlay fee be charged only to nonresident students
who are both citizens and residents of a foreign country
thereby expanding the authorization for CCC districts to
also charge this fee to nonresident students who either
reside in and/or are US citizens.
STAFF COMMENTS
1) Why this fee ? Resident students theoretically support
AB 947
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capital improvements through their taxes and current
law allows CCC districts to charge foreign students a
nonresident capital outlay fee. However, there is no
authority for nonresident students who are US citizens
and/or residents in the US but outside California to
be charged a fee to support capital improvements, even
though these students use the facilities in the same
way as resident and foreign students. It is unclear
what the rationale would be to exclude nonresident
students who either reside in another state and/or who
are US citizens.
2) Who currently charges the fee ? According to the CCC
Chancellor's Office, 35 of 108 CCC districts currently
charge a capital outlay fee to foreign nonresident
students. The fee ranges from a low of $5 per unit to
a high of $50 per unit. The average fee is $8 per
unit. In addition to this fee, the statewide average
for nonresident students is $190 per unit (from a low
of $115 per unit to a high of $239) whereas resident
students pay $20 per unit.
SUPPORT
Community College League
Long Beach City College
Santa Monica College
OPPOSITION
None received.