BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 540
                                                                  Page  1

          Date of Hearing:   May 3, 2001

                       ASSEMBLY COMMITTEE ON HIGHER EDUCATION
                                Elaine Alquist, Chair
                    AB 540 (Firebaugh) - As Amended:  May 1, 2001
           
          SUBJECT  :   Public postsecondary education:  residency.

           SUMMARY  :  Allows specified nonresidents to meet state residency  
          requirements for the purposes of establishing tuition levels at  
          the California State University (CSU) and California Community  
          Colleges (CCC).  Specifically,  this bill  would:

          1)Permit a nonresident to pay resident tuition at CSU or CCC  
            provided that they meet all of the following requirements:

             a)   Attended high school in California for three or more  
               years;

             b)   Graduated from a California high school; and,

             c)   Continues his or her education at a California  
               institution of higher education within one year of high  
               school graduation or on or before January 1, 2002.

          2)Request the Regents of the University of California (UC) to  
            also exempt persons meeting the above criteria from paying  
            non-resident tuition.

          3)Allow persons meeting the above criteria to be deemed to meet  
            residency requirements with respect to eligibility for  
            California student aid programs.

           EXISTING LAW:  

          1)Establishes residency requirements for students attending a  
            CSU or CCC campus and requires CSU and CCC to charge  
            nonresident tuition to any student who is not a California  
            resident, as defined.

          2)Provides for the Cal Grant Program, administered by Student  
            Aid Commission (SAC) to provide grants to financially needy  
            students to attend college.  The Cal Grant program consists of  
            four types of awards:  A, B, C T, and the Community College  
            Transfer Entitlement.  Students who are not residents of  








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            California, as defined, are ineligible for these grants.

           FISCAL EFFECT  :  Unknown

           COMMENTS  : The educational rights of undocumented students is a  
          longstanding issue that has been debated within legislative and  
          judicial arenas for years.  Current law was contested in a 1985  
          court case  Leticia A. v. Board of Regents of the University of  
          California  .  This challenge was filed by a group of undocumented  
          students who were not recognized as California residents for  
          purposes of determining tuition.  At that time, the court ruled  
          that charging nonresident tuition to undocumented students was  
          unconstitutional because both UC and CSU used a different  
          definition of "residency" for undocumented aliens than it used  
          for United States (U.S.) citizens.

          The 1985 decision was later overridden by the 1990 Court of  
          Appeal, Second District decision  Regents of the University of  
          California v. Los Angeles County Superior Court  , also known as  
          the  Bradford  decision.  In  Bradford  , the court held that current  
          law was constitutional and that the related Education Code  
          sections were to be upheld. 

          Both  Leticia A  and  Bradford  dealt solely with the issue of  
          defining "California residency" for purposes of assessing  
          nonresident tuition.  Prior legislation on this topic, AB 592  
          (Polanco) of 1991, would have statutorily altered the definition  
          of "California residency" as it applies to college tuition.

          This measure does not change the definition of "California  
          resident" nor does it alter current law regarding the assessment  
          of nonresident tuition to students that are not "California  
          residents".  Instead, this measure simply requires that CSU and  
          CCC charge  only  mandatory systemwide fees and not  nonresident  
          tuition to those students who have:

          1)Attended a California high school for at least three years;

          2)Graduated from high school; and,

          3)Obtained admission to a CSU or CCC campus.

          UC resident mandatory fees total $3,964 while nonresidents pay  
          in excess of $10,000.  CSU resident students pay $1,839 in  
          mandatory fees, while nonresident students pay $7,380.  Within  








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          CCC, resident students pay $11 per unit while non-residents pay  
          $130 per unit.

          The current Cal Grant program provides several different  
          categories of grants.  While some Cal Grants provide initial  
          access costs in the first year of higher education and other  
          limited funding, the general awards provide tuition costs at UC  
          and CSU or up to $9,708 at private postsecondary institutions.

          According to the author, many of the students that would benefit  
          under this measure are children of parents who have been granted  
          amnesty by the federal government and are waiting for their own  
          applications for citizenship to be accepted by the Immigration  
          and Naturalization Service.  The majority of these students  
          consider California their home and are expected to become  
          citizens.

          Additionally, supporters argue that this measure will help  
          talented California high school students, who cannot afford to  
          pay nonresident tuition, to afford college.  They point to  
          several cases in which students were encouraged to attend  
          college and apply for programs such as the Cal Grant, only to  
          find that they are ineligible for aid and must pay an extremely  
          high tuition due to their nonresident status. 

          For many of these students, the biggest barrier to attending and  
          enrolling in college is the cost.  Under federal and state law,  
          undocumented students, regardless of their academic achievement  
          or financial need, are not eligible for federal or state  
          financial aid nor are they eligible to receive campus-based aid  
          or subsidized student loans.

           Previous Legislation  : This measure is similar to AB 1197  
          (Firebaugh) of 1999 which was passed by the Committee on Higher  
          Education, Assembly, and Senate, but vetoed by the Governor.  AB  
          1197 had a provision requiring the students to be in the process  
          of obtaining citizenship in order to benefit from the in-state  
          tuition.  This is not a part of the current legislation.

          In his veto message, Governor Davis cited the Illegal  
          Immigration Reform and Immigrant Responsibility Act of 1996  
          (IIRIRA), by which undocumented aliens are ineligible to receive  
          postsecondary education benefits based on state residence unless  
          a citizen or national of the U.S. would be eligible for the same  
          benefits without regard to their residence (Title VIII, Section  








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          1623).

          A close reading of the legislation shows that the benefit  
          provided in AB 540 is available to "any person" (page 3, line 4)  
          which could include non-residents as well as U.S. residents from  
          other states, as long as they meet the outlined conditions.  For  
          example, a resident of Oregon who lives on the border and is  
          educated in a California high school would be able to pay  
          in-state tuition under this legislation.  It is unlikely that  
          the legislation in its current form is in violation with  
          existing federal law.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          American Civil Liberties Union
          Asian Pacific American Legal Center of Southern California
          California Association for Bilingual Education
          California Catholic Conference
          California Federation of Teachers
          California Immigrant Welfare Collaborative
          California School Employees Association
          California State Student Association
          California Teachers Association
          Center for Third World Organizations
          Children's Advocacy Institute
          Chinese for Affirmative Action
          Coalition for Humane Immigrant Rights of Los Angeles
          Community College League of California
          Immigrant Legal Resource Center
          Keek School of Medicine, University of Southern California
          Lambda Letters
          Los Angeles Center for Law and Justice
          Los Angeles Community College District
          Mexican American Legal Defense and Education Fund
          National Council of La Raza
          National Organization for Women
          Salvadoran American Leadership and Educational Fund
          Several Individual Letters

           Opposition 
           
          California Coalition for Immigration Reform
          Individual Letters








                                                                  AB 540
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          Analysis Prepared by  :    Paul Mitchell / HIGHER ED. / (916)  
          319-3960