Due to concerns about increases in nonresident tuition levels, lack of a state policy for nonresident tuition, and the fact that nonresident tuition was higher at California State University (CSU) in 1986-87 and 1987-88 than at the University of California (UC), the California legislature requested the Postsecondary Education Commission to recommend a long-term nonresident tuition policy for public colleges and universities. The discussions and findings are in three sections: nonresident tuition in California; nonresident tuition in other states; and recommendations for state policy guidelines for nonresident tuition. Part 1 "Nonresident Tuition in California," covers UC, CSU, California Community Colleges, segments comparisons, and California residency requirements. Part 2,"Nonresident Tuition in Other States," covers the methodology of selecting comparison institutions, level of fees, methodologies used for adjusting nonresident tuition levels, and residency requirements. In part 3, recommendations cover the following: context for policy, need for comparability among the differing nonresident methodologies, California nonresident charges compared with those charged by comparable institutions nationally, nonresident methodologies and their compatibility with the state's resident fee policy, need for revision of California's residency requirements, and differential fee levels for professional students in high-cost disciplines. Four appendices offer the text of Senate Concurrent Resolution 69 and information about the following: 1988-89 tuition and fees, UC and 23 other institutions; community college students who are or may be exempted from paying nonresident tuition; and exceptions to the general residency rule. (SM)