This report provides background information for a statewide review of out-of-state/out-of-country fees charged by California's community colleges. First, introductory comments indicate that the community colleges determine student residency through the dual criteria of physical presence and intent to become a resident. While similar criteria are used by other California colleges, there are substantial differences among institutions in the way nonresident fees are set and levied. Basic state policy on nonresident fees is to charge community college students the current cost of their education, excluding capital costs. The use of legally authorized waivers and exclusions results in fee revenues generally covering nine-tenths of operating costs for these students. Subsequent sections of the report focus on: (1) residency provisions under California law, including a list of the ways specified in the Administrative Code to prove intent to become a resident; (2) determination of nonresident charges; (3) waivers and financial aid; (4) nonresident tuition policies of the University of California and California State University; and (5) comparative information on policies, regulations, and fees in other states, showing that California's nonresident fees are higher than those charged by community colleges in all but 17 states. Concluding remarks on enrollment trends indicate that just over half of the 23,000 nonresident students attending California's community colleges are from other countries. Appendixes present tables showing trends in tuition and enrollments within California and tuition statistics from other states. (AAC)