SENATE BUDGET AND APPROPRIATIONS COMMITTEE

STATEMENT TO

[First Reprint]

SENATE, No. 2555

STATE OF NEW JERSEY

DATED:  JANUARY 6, 2020

     The Senate Budget and Appropriations Committee reports favorably Senate Bill No. 2555 (1R).

     This bill allows dependent students whose parents or guardians that hold H-1B visas to qualify for in-State tuition at public institutions of higher education provided they meet certain criteria.

     Under section 1 of P.L.2013, c.170 (C.18A:62-4.4), a student, including a student without lawful immigration status, is permitted to pay in-State tuition at the State’s public institutions of higher education if the student meets the following criteria:

     (1)   attended high school in this State for three or more years;

     (2)   graduated from a high school in this State or received the equivalent of a high school diploma in this State;

     (3)   registers as an entering student or is currently enrolled in a public institution of higher education not earlier than the fall semester of the 2013-2014 academic year; and

     (4)   in the case of a person without lawful immigration status, files an affidavit with the institution of higher education stating that the student has filed an application to legalize his immigration status or will file an application as soon as he is eligible to do so.

     The law specifically states, however, that students who are nonimmigrant aliens within the meaning of section 101(a)(15) of the “Immigration and Nationality Act,” 8 U.S.C. s.1101(a)(15), are not permitted to pay in-State tuition under the provisions of the law.  Among those who fall under this nonimmigrant alien category are persons holding an H-1B visa.  This bill provides that if the criteria provided in section 1 of P.L.2013, c.170 (C.18A:62-4.4) are met, a dependent student whose parent or guardian holds an H-1B visa will be eligible for in-State tuition at public institutions of higher education.

      According to the United States Citizenship and Immigration Services, the H-1B visa category applies to people who wish to perform services in a specialty occupation, services of exceptional merit and ability relating to a federal Department of Defense cooperative research and development project, or services as a fashion model of distinguished merit or ability.

FISCAL IMPACT:

      The Office of Legislative Services (OLS) estimates that this bill will have an indeterminate impact on public institutions of higher education in the State.  There is insufficient information to determine the bill’s fiscal impact, primarily because the number of students who would meet the requirements under the bill cannot be ascertained.  While the immediate effect of the bill would likely be a tuition revenue decrease at the public institutions of higher education, longer-term tuition revenues may increase or decrease to the extent that students, who may not have otherwise attended a public institution of higher education, would enroll in the institutions because of the lower tuition price created by the bill.  In the near-term, the bill would affect the tuition revenues of public institutions only to the extent that the dependent students of H-1B visa holders are not currently charged the in-State tuition rate.  Lastly, the OLS notes that higher education tuition revenues are not included as part of the annual appropriations act.  Any changes in tuition revenue would only affect the public institutions of higher education.