BILL ANALYSIS                                                                                                                                                                                                    

                                                                     AB 2297
                                                                     Page  1

        ASSEMBLY THIRD READING
        AB 2297 (Brownley)
        As Amended  April 8, 2010
        Majority vote 

         HIGHER EDUCATION    9-0         APPROPRIATIONS      16-1         
         
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        |Ayes:|Block, Norby, Adams,      |Ayes:|Fuentes, Conway, Ammiano, |
        |     |Chesbro, Fong, Fuller,    |     |Bradford, Charles         |
        |     |Galgiani, Portantino,     |     |Calderon, Coto, Davis,    |
        |     |Ruskin                    |     |Nava, Hall, Harkey,       |
        |     |                          |     |Nielsen, Norby, Skinner,  |
        |     |                          |     |Solorio, Torlakson,       |
        |     |                          |     |Torrico                   |
        |     |                          |     |                          |
        |-----+--------------------------+-----+--------------------------|
        |     |                          |Nays:|Miller                    |
        |     |                          |     |                          |
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         SUMMARY  :  Allows the governing board of a California Community  
        College (CCC) to use an alternative method for calculating  
        nonresident fee amounts.  Specifically,  this bill  allows a CCC  
        governing board:  

        1)To adopt a nonresident fee that is no greater than the average of  
          the nonresident fees of public community colleges of 12 states that  
          are comparable to California in cost-of-living.  Provides that the  
          determination of comparable states must be based on a composite  
          cost-of-living index as determined by the United States Department  
          of Labor or cooperating government agency.

        2)That calculates its nonresident fees based on the statewide average  
          expense of education to set the nonresident fee at the greater of  
          the current or any of the four immediately preceding fiscal year  
          (FY) amounts, if the amount calculated for the succeeding FY is  
          less than the amount calculated for the current FY. 
         
        EXISTING LAW  requires CCC district governing boards to adopt  
        nonresident student fees, with exceptions.  Establishes a number of  
        requirements for CCC districts nonresident student fees amounts  
        including that nonresident fee increases be gradual, moderate, and  
        predictable and that one of four outlined calculation methods be used  
        in establishing nonresident fee amounts.

         FISCAL EFFECT :  According to the Assembly Appropriations Committee,  





                                                                     AB 2297
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        use of the alternative methodology provided in this bill would allow  
        CCC districts considerable flexibility to increase nonresident fees  
        and could result in additional fee revenues in the tens of millions  
        of dollars to CCC districts. 

         COMMENTS  :  Public colleges and universities throughout the country  
        have additional charges for out-of-state students as a way to ensure  
        residents do not assume the financial burden of educating students  
        whose presence in the state is not intended to be permanent and who  
        did not pay taxes to support the public higher education systems.  In  
        2009-10, the statewide average CCC nonresident fee was $190 per  
        semester unit.  According to data published by the Missouri Economic  
        Research & Information Center and the Washington Higher Education  
        Coordinating Board, community college nonresident student tuition and  
        fees in the 12 states most comparable to California in cost-of-living  
        averages about $310 per credit.  According to the author, this bill  
        would give CCCs greater authority to charge nonresidents a fee that  
        could be used to increase the quality of education.  
         

        Analysis Prepared by  :    Laura Metune / HIGHER ED. / (916) 319-3960  
        FN: 0003989