Existing law establishes the University of California, administered by the Regents of the University of California, the California State University administered by the Trustees of the California State University, and the California Community Colleges, administered by the Board of Governors of the California Community Colleges, as the 3 segments of public postsecondary education in the state. The Donahoe Higher Education Act prohibits campuses of those segments from charging mandatory systemwide tuition or fees to specified students who apply for a waiver, including a child of any veteran of the United States military who has a service-connected disability, has been killed in service, or has died of a service-connected disability, an undergraduate student who is a recipient of a Medal of Honor, or an undergraduate student who is a child of a recipient of a Medal of Honor and who is no more than 27 years old, where the annual income of the recipient or child, as applicable, including the value of any support received from a parent, does not exceed the national poverty level.

This bill would instead require that the annual income of the child not exceed the state poverty level, as defined. The bill would also make nonsubstantive changes to provisions relating to this waiver of mandatory systemwide tuition and fees. To the extent these provisions would add additional duties on community college districts, the bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

Existing law establishes the University of California, administered by the Regents of the University of California, the California State University administered by the Trustees of the California State University, and the California Community Colleges, administered by the Board of Governors of the California Community Colleges, as the 3 segments of public postsecondary education in the state. The Donahoe Higher Education Act prohibits campuses of those segments from charging mandatory systemwide tuition or fees to specified students who apply for a waiver, including a child of any veteran of the United States military who has a service-connected disability, has been killed in service, or has died of a service-connected disability, an undergraduate student who is a recipient of a Medal of Honor, or an undergraduate student who is a child of a recipient of a Medal of Honor and who is no more than 27 years old, where the annual income of the recipient or child, as applicable, including the value of any support received from a parent, does not exceed the national poverty level.

This bill would instead require that the annual income of the child not exceed the state poverty level, as defined. The bill would also make nonsubstantive changes to provisions relating to this waiver of mandatory systemwide tuition and fees. To the extent these provisions would add additional duties on community college districts, the bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

Existing law establishes the segments of the public postsecondary education system in the state, including the University of California administered by the Regents of the University of California, the California State University administered by the Trustees of the California State University, and the California Community Colleges administered by the Board of Governors of the California Community Colleges. The Donahoe Higher Education Act prohibits campuses of those segments from charging mandatory systemwide tuition or fees to specified students who apply for a waiver, including a child of any veteran of the United States military who has a service-connected disability, has been killed in service, or has died of a service-connected disability, where the annual income of the child, including the value of any support received from a parent, does not exceed the national poverty level.

This bill would instead require that the annual income of the child not exceed the state poverty level, as defined. The bill would also make nonsubstantive changes to provisions relating to this waiver of mandatory systemwide tuition and fees. To the extent these provisions would add additional duties on community college districts, the bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

 THIRD READING  

Bill No: AB 1745

Author: Soria (D)

Introduced: 2/17/23

Vote: 21

SENATE EDUCATION COMMITTEE: 7-0, 6/14/23

AYES: Newman, Ochoa Bogh, Cortese, Glazer, McGuire, Smallwood-Cuevas, Wilk

SENATE MILITARY & VETERANS COMMITTEE: 4-0, 7/10/23

AYES: Archuleta, Alvarado-Gil, Menjivar, Umberg

NO VOTE RECORDED: Grove

SENATE APPROPRIATIONS COMMITTEE: 7-0, 9/1/23

AYES: Portantino, Jones, Ashby, Bradford, Seyarto, Wahab, Wiener

ASSEMBLY FLOOR: 75-0, 5/25/23 - See last page for vote

SUBJECT: Public postsecondary education: veterans: waiver of mandatory systemwide tuition and fees

SOURCE: Author

DIGEST:

This bill modifies the annual income metric used to determine eligibility for the tuition waiver program for children of service-injured veterans attending a California Community College (CCC), California State University (CSU) or University of California (UC) campus.

ANALYSIS: Existing federal law establishes educational benefits for the spouse and children of both currently serving members of the Armed Forces of the United States and veterans, in such instances where the service member or veteran is permanently and totally disabled due to a service-connected disability, or died while on active duty or as a result of a service-connected disability. (38 U.S. Code Section 3500, et seq.)

Existing state law:

1. Establishes the UC as a public trust to be administered by the UC Regents; and, grants the Regents full powers of organization and government, subject only to such legislative control as may be necessary to insure security of its funds, compliance with the terms of its endowments, statutory requirements around competitive bidding and contracts, sales of property and the purchase of materials, goods and services. (Article IX, Section (9)(a) of the California Constitution)
2. Establishes the Donahoe Higher Education Act, setting forth the mission of the UC, CSU, and CCCs. (Education Code (EC) § 66010, et seq.)
3. Confers upon the CSU Trustees the powers, duties, and functions with respect to the management, administration, control of the CSU system and provides that the Trustees are responsible for the rule of government of their appointees and employees. (EC § 66606 and 89500, et seq.)
4. Establishes the CCC under the administration of the Board of Governors of the CCC, as one of the segments of public postsecondary education in this state. The CCC shall be comprised of community college districts. (EC § 70900)
5. Prohibits, under the Donahoe Higher Education Act, campuses of those segments from charging mandatory systemwide tuition or fees to specified students who apply for a waiver, including a child of any veteran of the United States military who has a service-connected disability, has been killed in service, or has died of a service-connected disability, where the annual income of the child, including the value of any support received from a parent, does not exceed the national poverty level. (EC § 66025.3, et seq.)
6. Establishes various educational benefits for dependents of veterans who were killed during military service or are totally disabled, as specified; defines “dependent of a veteran” to include the spouse of a totally disabled veteran; and prohibits a dependent of a veteran from receiving these educational benefits during the time the dependent is entitled to receive specified federal educational benefits or duplicate assistance from any other government source. (Military and Veterans Code (MVC) Section 890, et seq.)

This bill modifies the annual income metric used to determine eligibility for the tuition waiver program for children of service-injured veterans attending a CCC, CSU or UC campus. Specifically, this bill:

1. Requires that the annual income of the child of any veteran of the United States military who has a service-connected disability, has been killed in service, or has died of a service-connected disability not exceed the state poverty level, instead of the national poverty level, in order to qualify for the tuition waiver program at a CCC, CSU or UC.
2. Defines the “state poverty level” to mean annual household income that is less than the amount calculated for a single person with no dependents as defined in the Revenue and Tax Code.
3. Makes other technical changes.

Comments

1. Need for the bill. According to the author, “The burdens and sacrifices made by members of the military have long consequences, sometimes across generations. The spouses and children of military members also experience professional and educational instability, further exacerbated if their military parent is killed or disabled through service. Because of this, federal and state governments offer educational and other benefits in an attempt to offset those conditions and aid veterans and their dependents in their transition to and success in civilian life. Among other benefits, California offers a college fee waiver benefit to veteran dependents attending a California public college or university. It is a generous benefit, but it is also complicated and sometimes contradictory, providing benefits to children and spouses in some cases, but not others. Under one category of eligibility, the dependent children of service-disabled veterans are subject to an income cap, defined as the federal poverty level. Under that definition, a prospective student working just 20 hours a week in the year before applying for the waiver would render themselves ineligible for the waiver. A better measure is one that reflects California’s economy, rather than ruling the children of disabled veterans out because of a national one-size-fits-all rule.”
2. Challenges with Federal poverty level metric. According to information provided by the author's office, children of veterans with a service-connected disability are only eligible for the College Fee Waiver for Dependents program if their annual household income, including parent support, does not exceed the federal poverty level for an individual with no dependents, which is currently around $15,000 according to the United States Census Bureau. This year, California's minimum wage increased to $15.50 per hour. A prospective student working 20 hours per week for a year before enrolling in the waiver program would earn around $16,000 in annual gross income, which would surpass the level disqualifying them from the benefit. In other cases (e.g., childcare subsidies), the state utilizes income numbers as specific as zip codes rather than national indicators to establish need. Under the definition of "extremely low income" under Health and Safety Code 50106, a person in California with an annual income two times that of the "national poverty level" now used to limit eligibility for this program could qualify for subsidized supportive housing.

This bill attempts to realign the annual income metric with one that reflects wages, cost of living and other economic conditions of this state.

1. State poverty level. This bill proposes a new income cap that is less than the annual household income for a single person with no dependents, as calculated by the California Revenue and Tax Code. According to the Franchise Tax Board website, this amount is $20,913 for the taxable year 2022.
2. Other tuition waiver programs. Current law prohibits public postsecondary institutions from applying certain fees to various groups impacted by a tragic event, these waivers include:
   1. A surviving spouse or child of a deceased person of active law enforcement service.
   2. A surviving spouse or child of a deceased person of active fire suppression and prevention.
   3. The dependent of any California resident killed in the September 11, 2001 terrorist attacks.
   4. The dependent of veteran killed or permanently disabled in the line of duty, as specified.
   5. Current and former foster youth.
   6. A wrongfully imprisoned person.

This bill modifies an existing program, which could expand the overall number of individuals eligible for a tuition waiver at a public higher education institution. Tuition costs are a barrier for many individuals with financial hardship, and although this bill raises the income cap, the proposed solution is one that is based on financial need, which is consistent with the original waiver program and other state aid programs.

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

According to the Senate Appropriations Committee:

• The CSU indicates that this bill would significantly expand the pool of eligible students by establishing a new “state poverty level” which would likely result in additional costs totaling in the unknown millions of dollars each year across the 23 campuses.  Currently, there is no data on how many students are rejected due to exceeding the current income threshold, nor is there any data on how many elect not to apply because they know they have exceeded the current threshold.   
• The UC indicates that any costs resulting from this bill would be minor and absorbable within existing resources.
• The Chancellor’s Office estimates ongoing Proposition 98 General Fund costs in the low to mid hundreds of thousands of dollars each year to provide additional fee waivers to newly eligible students. While the fee waiver would only affect a small population of students, it is difficult to predict whether more students will apply. Assuming the program will grow between five and fifteen percent, the bill’s costs could range from $197,000 to $592,000 in ongoing costs each year. The Chancellor’s Office indicates there could also be one-time Proposition 98 General Fund costs of about $329,000 for the community colleges to update their existing fee waiver policies and depending on the level of program growth, there could be additional cost pressures on financial aid offices associated with the workload in processing the fee waivers. Further, the Chancellor’s Office estimates up to $23,000 in state operations costs (General Fund).

SUPPORT: (Verified 9/1/23)

Office of Lieutenant Governor Eleni Kounalakis

OPPOSITION: (Verified 9/1/23)

None received

ASSEMBLY FLOOR: 75-0, 5/25/23

AYES: Addis, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Cervantes, Chen, Connolly, Megan Dahle, Davies, Dixon, Essayli, Flora, Mike Fong, Vince Fong, Friedman, Gabriel, Gallagher, Garcia, Gipson, Grayson, Haney, Hart, Holden, Hoover, Irwin, Jackson, Jones-Sawyer, Lee, Low, Lowenthal, Maienschein, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Ortega, Pacheco, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Reyes, Luz Rivas, Robert Rivas, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Weber, Wicks, Wilson, Wood, Zbur, Rendon

NO VOTE RECORDED: Aguiar-Curry, Kalra, Lackey, Mathis, Papan

Prepared by: Olgalilia Ramirez / ED. / (916) 651-4105

9/4/23 9:19:19

**** END ****

SENATE COMMITTEE ON APPROPRIATIONS

Senator Anthony Portantino, Chair

2023 - 2024 Regular Session

AB 1745 (Soria) - Public postsecondary education: veterans: waiver of mandatory systemwide tuition and fees

Bill Summary:

This bill modifies the annual income metric used to determine eligibility for the tuition waiver program for children of service-injured veterans attending a California Community College (CCC), California State University (CSU) or University of California (UC) campus.

Fiscal Impact:

• The CSU indicates that this bill would significantly expand the pool of eligible students by establishing a new “state poverty level” which would likely result in additional costs totaling in the unknown millions of dollars each year across the 23 campuses.  Currently, there is no data on how many students are rejected due to exceeding the current income threshold, nor is there any data on how many elect not to apply because they know they have exceeded the current threshold.   
• The UC indicates that any costs resulting from this bill would be minor and absorbable within existing resources.
• The Chancellor’s Office estimates ongoing Proposition 98 General Fund costs in the low to mid hundreds of thousands of dollars each year to provide additional fee waivers to newly eligible students. While the fee waiver would only affect a small population of students, it is difficult to predict whether more students will apply. Assuming the program will grow between five and fifteen percent, the bill’s costs could range from $197,000 to $592,000 in ongoing costs each year. The Chancellor’s Office indicates there could also be one-time Proposition 98 General Fund costs of about $329,000 for the community colleges to update their existing fee waiver policies and depending on the level of program growth, there could be additional cost pressures on financial aid offices associated with the workload in processing the fee waivers. Further, the Chancellor’s Office estimates up to $23,000 in state operations costs (General Fund).

Background:

Under existing law, the Donahoe Higher Education Act prohibits campuses of those segments from charging mandatory systemwide tuition or fees to specified students who apply for a waiver, including a child of any veteran of the United States military who has a service-connected disability, has been killed in service, or has died of a service-connected disability, where the annual income of the child, including the value of any support received from a parent, does not exceed the national poverty level. The national poverty level was $14,891 in gross income annually in 2022.

Proposed Law:

This bill requires that the annual income of the child of any veteran of the United States military who has a service-connected disability, has been killed in service, or has died of a service-connected disability, not exceed the state poverty level, instead of the national poverty level, in order to qualify for the tuition waiver program at a CCC, CSU or UC.

This bill defines the “state poverty level” to mean annual household income that is less than the amount calculated for a single person with no dependents as defined in the Revenue and Tax Code.

Staff Comments:

This bill modifies the annual income metric used to determine eligibility for the tuition waiver program for children of service-injured veterans attending a CCC, CSU or UC campus. Specifically, it proposes a new income cap that is less than the annual household income for a single person with no dependents, as calculated by the California Revenue and Tax Code. According to the Franchise Tax Board website, this amount was $20,913 for the taxable year 2022 while the national poverty level for 2022 was $14,891 in gross income.

-- END --

SENATE COMMITTEE ON APPROPRIATIONS

Senator Anthony Portantino, Chair

2023 - 2024 Regular Session

AB 1745 (Soria) - Public postsecondary education: veterans: waiver of mandatory systemwide tuition and fees

Bill Summary:

This bill modifies the annual income metric used to determine eligibility for the tuition waiver program for children of service-injured veterans attending a California Community College (CCC), California State University (CSU) or University of California (UC) campus.

Fiscal Impact:

• The CSU indicates that this bill would significantly expand the pool of eligible students by establishing a new “state poverty level” which would likely result in additional costs totaling in the unknown millions of dollars each year across the 23 campuses.  Currently, there is no data on how many students are rejected due to exceeding the current income threshold, nor is there any data on how many elect not to apply because they know they have exceeded the current threshold.   
• The UC indicates that any costs resulting from this bill would be minor and absorbable within existing resources.
• The Chancellor’s Office estimates ongoing Proposition 98 General Fund costs in the low to mid hundreds of thousands of dollars each year to provide additional fee waivers to newly eligible students. While the fee waiver would only affect a small population of students, it is difficult to predict whether more students will apply. Assuming the program will grow between five and fifteen percent, the bill’s costs could range from $197,000 to $592,000 in ongoing costs each year. The Chancellor’s Office indicates there could also be one-time Proposition 98 General Fund costs of about $329,000 for the community colleges to update their existing fee waiver policies and depending on the level of program growth, there could be additional cost pressures on financial aid offices associated with the workload in processing the fee waivers. Further, the Chancellor’s Office estimates up to $23,000 in state operations costs (General Fund).

Background:

Under existing law, the Donahoe Higher Education Act prohibits campuses of those segments from charging mandatory systemwide tuition or fees to specified students who apply for a waiver, including a child of any veteran of the United States military who has a service-connected disability, has been killed in service, or has died of a service-connected disability, where the annual income of the child, including the value of any support received from a parent, does not exceed the national poverty level. The national poverty level was $14,891 in gross income annually in 2022.

Proposed Law:

This bill requires that the annual income of the child of any veteran of the United States military who has a service-connected disability, has been killed in service, or has died of a service-connected disability, not exceed the state poverty level, instead of the national poverty level, in order to qualify for the tuition waiver program at a CCC, CSU or UC.

This bill defines the “state poverty level” to mean annual household income that is less than the amount calculated for a single person with no dependents as defined in the Revenue and Tax Code.

Staff Comments:

This bill modifies the annual income metric used to determine eligibility for the tuition waiver program for children of service-injured veterans attending a CCC, CSU or UC campus. Specifically, it proposes a new income cap that is less than the annual household income for a single person with no dependents, as calculated by the California Revenue and Tax Code. According to the Franchise Tax Board website, this amount was $20,913 for the taxable year 2022 while the national poverty level for 2022 was $14,891 in gross income.

-- END --

SENATE COMMITTEE ON MILITARY AND VETERANS AFFAIRS

Senator Bob Archuleta, Chair

2023 - 2024 Regular

Bill No: AB 1745 Hearing Date: 7/10/23

Subject: Public postsecondary education: veterans: waiver of mandatory systemwide tuition and fees

DESCRIPTION

Summary:

Modifies the annual income metric used to determine eligibility for the tuition waiver program for children of service-injured veterans attending a California Community College (CCC), California State University (CSU) or University of California (UC) campus.

Existing law:

1. Establishes educational benefits for the spouse and children of both currently serving members of the Armed Forces of the United States and veterans, in such instances where the service member or veteran is permanently and totally disabled due to a service-connected disability, or died while on active duty or as a result of a service-connected disability.
2. Establishes the UC as a public trust to be administered by the UC Regents; and, grants the Regents full powers of organization and government, subject only to such legislative control as may be necessary to insure security of its funds, compliance with the terms of its endowments, statutory requirements around competitive bidding and contracts, sales of property and the purchase of materials, goods and services.
3. Establishes the Donahoe Higher Education Act, setting forth the mission of the UC, CSU, and CCCs.
4. Confers upon the CSU Trustees the powers, duties, and functions with respect to the management, administration, control of the CSU system and provides that the Trustees are responsible for the rule of government of their appointees and employees.
5. Establishes the CCC under the administration of the Board of Governors of the CCC, as one of the segments of public postsecondary education in this state. The CCC shall be comprised of community college districts.
6. The Donahoe Higher Education Act prohibits campuses of those segments from charging mandatory systemwide tuition or fees to specified students who apply for a waiver, including a child of any veteran of the United States military who has a service-connected disability, has been killed in service, or has died of a service-connected disability, where the annual income of the child, including the value of any support received from a parent, does not exceed the national poverty level.
7. Establishes various educational benefits for dependents of veterans who were killed during military service or are totally disabled, as specified; defines “dependent of a veteran” to include the spouse of a totally disabled veteran; and prohibits a dependent of a veteran from receiving these educational benefits during the time the dependent is entitled to receive specified federal educational benefits or duplicative duplicate assistance from any other government source.

This bill:

Modifies the annual income metric used to determine eligibility for the tuition waiver program for children of service-injured veterans attending a CCC, CSU or UC campus. Specifically, it:

1. Requires that the annual income of the child of any veteran of the United States military who has a service-connected disability, has been killed in service, or has died of a service-connected disability not exceed the state poverty level, instead of the national poverty level, in order to qualify for the tuition waiver program at a CCC, CSU or UC.
2. Defines the “state poverty level” to mean annual household income that is less than the amount calculated for a single person with no dependents as defined in the Revenue and Tax Code.
3. Makes other technical changes.

BACKGROUND

​The College Fee Waiver for Veteran Dependents benefit waives mandatory system-wide tuition and fees at any State of California Community College, California State University, or University of California campus. This program does not cover the expense of books, parking or room and board.

COMMENT

Children of veterans with a service-connected disability are only eligible for the College Fee Waiver for Dependents program if their annual household income, including parent support, does not exceed the federal poverty level for an individual with no dependents, which is currently around $15,000 according to the United States Census Bureau. This year, California's minimum wage increased to $15.50 per hour. A prospective student working 20 hours per week for a year before enrolling in the waiver program would earn around $16,000 in annual gross income, which would surpass the level disqualifying them from the benefit. In other cases (e.g., childcare subsidies), the state utilizes income numbers as specific as zip codes rather than national indicators to establish need. Under the definition of "extremely low income" under Health and Safety Code 50106, a person in California with an annual income two times that of the "national poverty level" now used to limit eligibility for this program could qualify for subsidized supportive housing.

This bill attempts to realign the annual income metric with one that reflects wages, cost of living and other economic conditions of this state. Additionally, this bill modifies an existing program, which could expand the overall number of individuals eligible for a tuition waiver at a public higher education institution. Tuition costs are a barrier for many individuals with financial hardship, and although this bill raises the income cap, the proposed solution is one that is based on financial need, which is consistent with the original waiver program and other state aid programs.

According to the author:

“The burdens and sacrifices made by members of the military have long consequences, sometimes across generations. The spouses and children of military members also experience professional and educational instability, further exacerbated if their military parent is killed or disabled through service. Because of this, federal and state governments offer educational and other benefits in an attempt to offset those conditions and aid veterans and their dependents in their transition to and success in civilian life. Among other benefits, California offers a college fee waiver benefit to veteran dependents attending a California public college or university. It is a generous benefit, but it is also complicated and sometimes contradictory, providing benefits to children and spouses in some cases, but not others. Under one category of eligibility, the dependent children of service-disabled veterans are subject to an income cap, defined as the federal poverty level. Under that definition, a prospective student working just 20 hours a week in the year before applying for the waiver would render themselves ineligible for the waiver. A better measure is one that reflects California’s economy, rather than ruling the children of disabled veterans out because of a national one-size-fits-all rule.”

Previous Legislation:

AB 1606 (Ramos, 2022) would have made more expansive changes to the college fee waiver program, including a change to the income eligibility threshold that indexed it to “area median income.” AB 1606 died in the Assembly Committee on Appropriations.

POSITIONS

Sponsor: Author.

Support:

AMVETs – Department of Califonria

California Association of County Veterans Service Officers

California State Commanders Veterans Council

Vietnam Veterans of America - California State Counci

Oppose: None on File.

-- END --

SENATE COMMITTEE ON EDUCATION

Senator Josh Newman, Chair

2023 - 2024 Regular

Bill No: AB 1745 Hearing Date: June 14, 2023

Subject: Public postsecondary education: veterans: waiver of mandatory systemwide tuition and fees.

NOTE: This bill has been referred to the Committees on Education and Military and Veterans Affairs. A "do pass" motion should include referral to the Committee Military and Veterans Affairs.

SUMMARY

This bill modifies the annual income metric used to determine eligibility for the tuition waiver program for children of service-injured veterans attending a California Community College (CCC), California State University (CSU) or University of California (UC) campus.

BACKGROUND

Existing federal law:

1) Establishes educational benefits for the spouse and children of both currently serving members of the Armed Forces of the United States and veterans, in such instances where the service member or veteran is permanently and totally disabled due to a service-connected disability, or died while on active duty or as a result of a service-connected disability. (38 U.S. Code Section 3500, et seq.)

Existing state law:

1) Establishes the UC as a public trust to be administered by the UC Regents; and, grants the Regents full powers of organization and government, subject only to such legislative control as may be necessary to insure security of its funds, compliance with the terms of its endowments, statutory requirements around competitive bidding and contracts, sales of property and the purchase of materials, goods and services. (Article IX, Section (9)(a) of the California Constitution)

2) Establishes the Donahoe Higher Education Act, setting forth the mission of the UC, CSU, and CCCs. (Education Code (EC) § 66010, et seq.)

3) Confers upon the CSU Trustees the powers, duties, and functions with respect to the management, administration, control of the CSU system and provides that the Trustees are responsible for the rule of government of their appointees and employees. (EC § 66606 and 89500, et seq.)

4) Establishes the CCC under the administration of the Board of Governors of the CCC, as one of the segments of public postsecondary education in this state. The CCC shall be comprised of community college districts. (EC § 70900)

5) The Donahoe Higher Education Act prohibits campuses of those segments from charging mandatory systemwide tuition or fees to specified students who apply for a waiver, including a child of any veteran of the United States military who has a service-connected disability, has been killed in service, or has died of a service-connected disability, where the annual income of the child, including the value of any support received from a parent, does not exceed the national poverty level. (EC § 66025.3, et seq.)

6) Establishes various educational benefits for dependents of veterans who were killed during military service or are totally disabled, as specified; defines “dependent of a veteran” to include the spouse of a totally disabled veteran; and prohibits a dependent of a veteran from receiving these educational benefits during the time the dependent is entitled to receive specified federal educational benefits or duplicative duplicate assistance from any other government source. (Military and Veterans Code (MVC) Section 890, et seq.)

ANALYSIS

This bill modifies the annual income metric used to determine eligibility for the tuition waiver program for children of service-injured veterans attending a CCC, CSU or UC campus. Specifically, it:

1. Requires that the annual income of the child of any veteran of the United States military who has a service-connected disability, has been killed in service, or has died of a service-connected disability not exceed the state poverty level, instead of the national poverty level, in order to qualify for the tuition waiver program at a CCC, CSU or UC.
2. Defines the “state poverty level” to mean annual household income that is less than the amount calculated for a single person with no dependents as defined in the Revenue and Tax Code.
3. Makes other technical changes.

STAFF COMMENTS

1. Need for the bill. According to the author, “The burdens and sacrifices made by members of the military have long consequences, sometimes across generations. The spouses and children of military members also experience professional and educational instability, further exacerbated if their military parent is killed or disabled through service. Because of this, federal and state governments offer educational and other benefits in an attempt to offset those conditions and aid veterans and their dependents in their transition to and success in civilian life. Among other benefits, California offers a college fee waiver benefit to veteran dependents attending a California public college or university. It is a generous benefit, but it is also complicated and sometimes contradictory, providing benefits to children and spouses in some cases, but not others. Under one category of eligibility, the dependent children of service-disabled veterans are subject to an income cap, defined as the federal poverty level. Under that definition, a prospective student working just 20 hours a week in the year before applying for the waiver would render themselves ineligible for the waiver. A better measure is one that reflects California’s economy, rather than ruling the children of disabled veterans out because of a national one-size-fits-all rule.”
2. Challenges with Federal poverty level metric. According to information provided by the author's office, children of veterans with a service-connected disability are only eligible for the College Fee Waiver for Dependents program if their annual household income, including parent support, does not exceed the federal poverty level for an individual with no dependents, which is currently around $15,000 according to the United States Census Bureau. This year, California's minimum wage increased to $15.50 per hour. A prospective student working 20 hours per week for a year before enrolling in the waiver program would earn around $16,000 in annual gross income, which would surpass the level disqualifying them from the benefit. In other cases (e.g., childcare subsidies), the state utilizes income numbers as specific as zip codes rather than national indicators to establish need. Under the definition of "extremely low income" under Health and Safety Code 50106, a person in California with an annual income two times that of the "national poverty level" now used to limit eligibility for this program could qualify for subsidized supportive housing.

This bill attempts to realign the annual income metric with one that reflects wages, cost of living and other economic conditions of this state.

1. State poverty level. This measure proposes a new income cap that is less than the annual household income for a single person with no dependents, as calculated by the California Revenue and Tax Code. According to the Franchise Tax Board website, this amount is $20,913 for the taxable year 2022.
2. Other tuition waiver programs. Current law prohibits public postsecondary institutions from applying certain fees to various groups impacted by a tragic event, these waivers include:
   1. A surviving spouse or child of a deceased person of active law enforcement service.
   2. A surviving spouse or child of a deceased person of active fire suppression and prevention.
   3. The dependent of any California resident killed in the September 11, 2001 terrorist attacks.
   4. The dependent of veteran killed or permanently disabled in the line of duty, as specified.
   5. Current and former foster youth.
   6. A wrongfully imprisoned person.

This bill modifies an existing program, which could expand the overall number of individuals eligible for a tuition waiver at a public higher education institution. Tuition costs are a barrier for many individuals with financial hardship, and although this bill raises the income cap, the proposed solution is one that is based on financial need, which is consistent with the original waiver program and other state aid programs.

1. Fiscal impact. According to information provided in the Assembly Committee on Appropriations analysis this bill would have the following fiscal impact:
2. Ongoing General Fund costs of an unknown amount to UC to begin providing tuition waivers to veteran dependents who earn more than $14,891 and less than $20,913 annually. In the 2022-23 academic year, annual resident tuition is $13,104. If 100 veteran dependents each received a tuition waiver as a result of this bill, costs would be about $1.3 million.
3. Ongoing General Fund costs of an unknown amount to CSU to begin providing tuition waivers to veteran dependents who earn more than $14,891 and less than $20,913 annually. In the 2022-23 academic year, annual resident tuition is $5,742. If 300 veteran dependents each received a tuition waiver as a result of this bill, costs would be $1.7 million.

3) Ongoing Proposition 98 General Fund costs of an unknown amount to CCC to begin providing tuition waivers to veteran dependents who earn more than $14,891 and less than $20,913 annually. In the 2022-23 academic year, annual resident tuition is $1,380. If 700 veteran dependents each received a tuition waiver as a result of this bill, costs would be about $1 million.

The state would need to reimburse these costs to CCC, if the Commission on State Mandates determines the bill’s requirements to be a reimbursable state mandate.

1. Prior legislation.

AB 1606 (Ramos, 2022) would have made more expansive changes to the college fee waiver program, including a change to the income eligibility threshold that indexed it to “area median income.” AB 1606 died in the Assembly Committee on Appropriations.

SUPPORT

None received

OPPOSITION

None received

-- END --

ASSEMBLY THIRD READING

ATR Bill Id:AB 1745

Author:(Soria)

As Introduced Ver:February 17, 2023

Majority vote

SUMMARY

Makes modifications to programs and definitions that serve veterans and their dependents.

Major Provisions

1. Requires that the annual income of the child of any veteran of the United States military who has a service-connected disability, has been killed in service, or has died of a service-connected disability not exceed the state poverty level, as defined, if that child's tuition and fees are not being charged, as specified.
2. Defines "state poverty level" as the annual household income that is less than the amount calculated for a single person with no dependents pursuant to Revenue and Tax Code, as specified.
3. Makes various technical and non-substantive changes.

COMMENTS

Federal benefits. The United States (U.S.) Department of Veterans Affairs administers education benefits for dependents and survivors. There are two main programs offering educational assistance to survivors and dependents of Veterans. The Marine Gunnery Sergeant John David Fry Scholarship (Fry Scholarship) is for children and spouses of active duty service members who died in the line of duty on or after September 11, 2001, or members of the Selected Reserve who died from a service-connected disability on or after September 11, 2001.

The Fry Scholarship can provide up to 36 months of benefits, including: money for tuition (full in-state tuition costs at public schools and up to $26,381.37 per year for training at private or out-of-state schools), funding for housing, and funding for books and supplies.

The Survivors' and Dependents' Educational Assistance (DEA, also called Chapter 35) program offers education and training to qualified dependents of veterans who are permanently and totally disabled because of a service-related condition, or died while on active duty or as a result of a service-related condition. DEA recipients receive a monthly payment to help cover the cost of college or graduate degree programs, career training certificate courses, educational and career counseling, apprenticeships, and on-the-job training. The current rate of funding for DEA recipients is $1,298 per month for 36 months.

College Fee Waiver for Veteran Dependents. The California Department of Veterans Affairs (CalVet) administers the College Fee Wavier for Veteran Dependents, which waives mandatory system-wide tuition and fees at any State of California Community College, California State University, or University of California campus. This program does not cover the expense of books, parking or room and board. There are four plans under which dependents of Veterans may be eligible, Plans A, B C, and D.

State poverty level. This proposal replaces the national poverty level income cap metric for CalVet College Fee Wavier for Veteran Dependents, instead electing to use "state poverty level." This is defined in AB 1745 (Soria) of the current legislative session as the annual household income that is less than the amount calculated for a single person with no dependents pursuant to the Revenue and Tax Code Section 18501. Using that metric, the student would have to have a gross income of less than $20,913 according to the Franchise Tax Board website.

Using the example in the author's statement, an eligible student working 20 hours per week, at the state minimum wage of 15.50 per hour, would gross $16,120 annually. This number exceeds that "national poverty" threshold in current law, which in 2022 was $14,891. This same student would not exceed the new "state poverty level" definition proposed in this bill.

According to the Author

According to the author, "the burdens and sacrifices made by members of the military have long consequences, sometimes across generations. The spouses and children of military members also experience professional and educational instability, further exacerbated if their military parent is killed or disabled through service. Because of this, federal and state governments offer educational and other benefits in an attempt to offset those conditions and aid veterans and their dependents in their transition to and success in civilian life. Among other benefits, California offers a college fee waiver benefit to veteran dependents attending a California public college or university. It is a generous benefit, but it is also complicated and sometimes contradictory, providing benefits to children and spouses in some cases, but not others. Under one category of eligibility, the dependent children of service-disabled veterans are subject to an income cap, defined as the federal poverty level. Under that definition, a prospective student working just 20 hours a week in the year before applying for the waiver would render themselves ineligible for the waiver. A better measure is one that reflects California's economy, rather than ruling the children of disabled veterans out because of a national one-size-fits-all rule."

Arguments in Support

None on file.

Arguments in Opposition

None on file.

FISCAL COMMENTS

According to the Assembly Committee on Appropriations:

1. Ongoing General Fund costs of an unknown amount to UC to begin providing tuition waivers to veteran dependents who earn more than $14,891 and less than $20,913 annually. In the 2022-23 academic year, annual resident tuition is $13,104. If 100 veteran dependents each received a tuition waiver as a result of this bill, costs would be about $1.3 million.
2. Ongoing General Fund costs of an unknown amount to CSU to begin providing tuition waivers to veteran dependents who earn more than $14,891 and less than $20,913 annually. In the 2022-23 academic year, annual resident tuition is $5,742. If 300 veteran dependents each received a tuition waiver as a result of this bill, costs would be $1.7 million.
3. Ongoing Proposition 98 General Fund costs of an unknown amount to CCC to begin providing tuition waivers to veteran dependents who earn more than $14,891 and less than $20,913 annually. In the 2022-23 academic year, annual resident tuition is $1,380. If 700 veteran dependents each received a tuition waiver as a result of this bill, costs would be about $1 million.

The state would need to reimburse these costs to CCC, if the Commission on State Mandates determines the bill's requirements to be a reimbursable state mandate.

VOTES

ASM HIGHER EDUCATION: 12-0-0

YES: Mike Fong, Ta, Addis, Arambula, Gabriel, Irwin, Low, Ortega, Sanchez, Santiago, Wallis, Weber

ASM APPROPRIATIONS: 15-0-1

YES: Holden, Megan Dahle, Bryan, Calderon, Wendy Carrillo, Dixon, Mike Fong, Hart, Lowenthal, Mathis, Papan, Pellerin, Sanchez, Weber, Ortega

ABS, ABST OR NV: Robert Rivas

UPDATED

VERSION: February 17, 2023

CONSULTANT: Kevin Powers / HIGHER ED. / (916) 319-3960 FN: 0000683

Date of Hearing: April 26, 2023

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Chris Holden, Chair

ABPCA Bill Id:AB 1745

Author:(Soria) – As Introduced Ver:February 17, 2023

Urgency: No State Mandated Local Program: Yes Reimbursable: Yes

SUMMARY:

This bill replaces the “national poverty level” income cap metric for tuition waivers for veteran dependents attending the University of California (UC), California State University (CSU), and California Community Colleges (CCC) with “state poverty level.” The bill defines “state poverty level” as the annual household income that is less than the amount calculated for a single person with no dependents pursuant to Revenue and Tax Code.

FISCAL EFFECT:

1. Ongoing General Fund costs of an unknown amount to UC to begin providing tuition waivers to veteran dependents who earn more than $14,891 and less than $20,913 annually. In the 2022-23 academic year, annual resident tuition is $13,104. If 100 veteran dependents each received a tuition waiver as a result of this bill, costs would be about $1.3 million.
2. Ongoing General Fund costs of an unknown amount to CSU to begin providing tuition waivers to veteran dependents who earn more than $14,891 and less than $20,913 annually. In the 2022-23 academic year, annual resident tuition is $5,742. If 300 veteran dependents each received a tuition waiver as a result of this bill, costs would be $1.7 million.
3. Ongoing Proposition 98 General Fund costs of an unknown amount to CCC to begin providing tuition waivers to veteran dependents who earn more than $14,891 and less than $20,913 annually. In the 2022-23 academic year, annual resident tuition is $1,380. If 700 veteran dependents each received a tuition waiver as a result of this bill, costs would be about $1 million.

The state would need to reimburse these costs to CCC, if the Commission on State Mandates determines the bill’s requirements to be a reimbursable state mandate.

COMMENTS:

1. Purpose. According to the author:

Among other benefits, California offers a college fee waiver benefit to veteran dependents attending a California public college or university. It is a generous benefit, but it is also complicated and sometimes contradictory, providing benefits to children and spouses in some cases, but not others. Under one category of eligibility, the dependent children of service-disabled veterans are subject to an income cap, defined as the federal poverty level. Under that definition, a prospective student working just 20 hours a week in the year before applying for the waiver would render themselves ineligible for the waiver. A better measure is one that reflects California’s economy, rather than ruling the children of disabled veterans out because of a national one-size-fits-all rule.

1. Background. Existing law prohibits UC, CSU, and CCC campuses from charging systemwide tuition or fees to certain students who apply for waivers, including a child of any veteran of the United States military who has a service-connected disability, has been killed in service, or has died of a service-connected disability, where the annual income of the child, including the value of any support received from a parent, does not exceed the national poverty level. In 2022, the national poverty level was $14,891 in gross income annually. According to CSU, during the 2021-22 academic year, it provided about 9,100 students with a waiver, totaling costs to CSU of about $52 million.

This bill replaces the national poverty level income cap metric for tuition and fee waivers at UC, CSU, and CCC with the state income level. According to the California Franchise Tax Board, a student would have to have a gross income or support received from a parent of less than $20,913 annually to qualify for the waiver under this metric.

1. Prior Legislation. AB 1606 (Ramos), of the 2021-22 Legislative Session, made more expansive changes to the college fee waiver program, including a change to the income eligibility threshold that indexed it to “area median income.” The bill died in this committee.

Analysis Prepared by: Natasha Collins / APPR. / (916) 319-2081

Date of Hearing: April 11, 2023

ASSEMBLY COMMITTEE ON HIGHER EDUCATION

Mike Fong, Chair

ABPCA Bill Id:AB 1745 (

Author:Soria) – As Introduced Ver:February 17, 2023

SUBJECT: Public postsecondary education: veterans: waiver of mandatory systemwide tuition and fees

SUMMARY: Makes modifications to programs and definitions that serve veterans and their

dependents. Specifically, this bill:

1. Requires that the annual income of the child of any veteran of the United States military who has a service-connected disability, has been killed in service, or has died of a service-connected disability not exceed the state poverty level, as defined, if that child’s tuition and fees are not being charged, as specified.
2. Defines “state poverty level” as the annual household income that is less than the amount calculated for a single person with no dependents pursuant to Revenue and Tax Code, as specified.
3. Makes various technical and non-substantive changes.

EXISTING LAW:

Federal law.

1. Establishes educational benefits for the spouse and children of both currently serving members of the Armed Forces of the United States and veterans, in such instances where the servicemember or veteran is permanently and totally disabled due to a service-connected disability, or died while on active duty or as a result of a service-connected disability. (38 U.S. Code Section 3500, et seq.)

State law.

1. Establishes the UC as a public trust to be administered by the Regents of the University of California (UC); and, grants the Regents full powers of organization and government, subject only to such legislative control as may be necessary to insure security of its funds, compliance with the terms of its endowments, statutory requirements around competitive bidding and contracts, sales of property and the purchase of materials, goods and services (Article IX, Section (9)(a) of the California Constitution).
2. Establishes the Donahoe Higher Education Act, setting forth the mission of the UC, California State University (CSU), and California Community Colleges (CCC) (Education Code (EDC) Section 66010, et seq.).
3. Confers upon the CSU Trustees the powers, duties, and functions with respect to the management, administration, control of the CSU system and provides that the Trustees are responsible for the rule of government of their appointees and employees (EDC Sections 66606 and 89500, et seq.).
4. Establishes the CCC under the administration of the Board of Governors of the CCC, as one of the segments of public postsecondary education in this state. The CCC shall be comprised of community college districts (EDC Section 70900).
5. The Donahoe Higher Education Act prohibits campuses of those segments from charging mandatory systemwide tuition or fees to specified students who apply for a waiver, including a child of any veteran of the United States military who has a service-connected disability, has been killed in service, or has died of a service-connected disability, where the annual income of the child, including the value of any support received from a parent, does not exceed the national poverty level. (EDC Section 66025.3, et seq.)
6. Establishes various educational benefits for dependents of veterans who were killed during military service or are totally disabled, as specified; defines “dependent of a veteran” to include the spouse of a totally disabled veteran; and prohibits a dependent of a veteran from receiving these educational benefits during the time the dependent is entitled to receive specified federal educational benefits or duplicative duplicate assistance from any other government source. (Military and Veterans Code (MVC) Section 890, et seq.)

FISCAL EFFECT: Unknown

COMMENTS: Purpose. According to the author, “the burdens and sacrifices made by members of the military have long consequences, sometimes across generations. The spouses and children of military members also experience professional and educational instability, further exacerbated if their military parent is killed or disabled through service. Because of this, federal and state governments offer educational and other benefits in an attempt to offset those conditions and aid veterans and their dependents in their transition to and success in civilian life. Among other benefits, California offers a college fee waiver benefit to veteran dependents attending a California public college or university. It is a generous benefit, but it is also complicated and sometimes contradictory, providing benefits to children and spouses in some cases, but not others. Under one category of eligibility, the dependent children of service-disabled veterans are subject to an income cap, defined as the federal poverty level. Under that definition, a prospective student working just 20 hours a week in the year before applying for the waiver would render themselves ineligible for the waiver. A better measure is one that reflects California’s economy, rather than ruling the children of disabled veterans out because of a national one-size-fits-all rule.”

Federal benefits. The U.S. Department of Veterans Affairs administers education benefits for dependents and survivors. There are two main programs offering educational assistance to survivors and dependents of Veterans. The Marine Gunnery Sergeant John David Fry Scholarship (Fry Scholarship) is for children and spouses of active duty servicemembers who died in the line of duty on or after September 11, 2001, or members of the Selected Reserve who died from a service-connected disability on or after September 11, 2001.

The Fry Scholarship can provide up to 36 months of benefits, including: money for tuition (full in-state tuition costs at public schools and up to $26,381.37 per year for training at private or out-of-state schools), funding for housing, and funding for books and supplies.

The Survivors’ and Dependents’ Educational Assistance (DEA, also called Chapter 35) program offers education and training to qualified dependents of veterans who are permanently and totally disabled because of a service-related condition, or died while on active duty or as a result of a service-related condition. DEA recipients receive a monthly payment to help cover the cost of college or graduate degree programs, career training certificate courses, educational and career counseling, apprenticeships, and on-the-job training. The current rate of funding for DEA recipients is $1,298 per month for 36 months.

College Fee Waiver for Veteran Dependents. The California Department of Veterans Affairs (CalVet) administers the College Fee Wavier for Veteran Dependents, which waives mandatory system-wide tuition and fees at any State of California Community College, California State University, or University of California campus. This program does not cover the expense of books, parking or room and board. There are four plans under which dependents of Veterans may be eligible, Plans A, B C, and D.

Plan A is restricted to:

1) The unmarried child of a veteran who is totally service-connected disabled, or whose death was officially rated as service-connected is eligible. The child must be over 14 years old and under 27 years old to be eligible. If the child is a veteran, then the age limit is extended to 30 years old.

2) The spouse of a wartime veteran who is totally service-connected disabled is eligible. There are no age limit restrictions.

3) The unmarried surviving spouse of a wartime veteran whose death has been rated as service-connected is eligible. There are no age limit restrictions.

4) Any dependent of any Veteran who has been declared missing in action, captured in the line of duty by hostile forces, or forcibly detained or interned in the line of duty by a foreign government or power is eligible.

The veteran must have served at least one day of active duty during a period of war as declared by the U.S. Congress, or during any time in which the veteran was awarded a campaign or expeditionary medal. Concurrent receipt of benefits under Plan A and VA Chapter 35 benefits is prohibited.

Plan B covers the child of a veteran who has a service-connected disability, or had a service-connected disability at the time of death, or died of service-related causes is eligible. The child's annual income, which includes the child's adjusted gross income, plus the value of support provided by a parent, may not exceed the annual income limit. The current academic year entitlement is based upon the previous calendar year's annual income.

Under Plan B, wartime service is not required and there are no specific age requirements. Children are the only dependents eligible under this plan. There is no prohibition against receiving concurrent VA Chapter 35 benefits.

Plan C covers any dependent of any member of the California National Guard, who in the line of duty while on active service to the state, was killed, died of a disability resulting from an event that occurred while in active service to the state, or is permanently disabled as a result of an event that occurred while in the service to the state is eligible. Surviving spouses who have not remarried are also eligible. "Active service to the state," for the purpose of this benefit, means a member of the California National Guard activated pursuant to Section 146 of the MVC.

Plan D covers Medal of Honor recipients and children of Medal of Honor recipients under the age of 27 may qualify. Benefits under Plan D are limited to undergraduate studies only, and applicants are subject to both income and age restrictions. There is no prohibition against receiving concurrent VA Chapter 35 benefits.

State poverty level. This proposal replaces the national poverty level income cap metric for CalVet College Fee Wavier for Veteran Dependents, instead electing to use “state poverty level.” This is defined in AB 1745 (Soria) as the annual household income that is less than the amount calculated for a single person with no dependents pursuant to the Revenue and Tax Code Section 18501. Using that metric, the student would have to have a gross income of less than $20,913 according to the Franchise Tax Board website.

Using the example in the author’s statement, an eligible student working 20 hours per week, at the state minimum wage of 15.50 per hour, would gross $16,120 annually. This number exceeds that “national poverty” threshold in current law, which in 2022 was $14,891. This same student would not exceed the new “state poverty level” definition proposed in this bill.

Prior legislation. AB 1606 (Ramos, 2022) made more expansive changes to the college fee waiver program, including a change to the income eligibility threshold that indexed it to “area median income.” It died in the Assembly Committee on Appropriations.

REGISTERED SUPPORT / OPPOSITION:

Support

None on file.

Opposition

None on file.

Analysis Prepared by: Kevin J. Powers / HIGHER ED. / (916) 319-3960