BILL ANALYSIS SENATE COMMITTEE ON EDUCATION Gloria Romero, Chair 2009-2010 Regular Session BILL NO: SB 1460 AUTHOR: Cedillo INTRODUCED: February 19, 2010 FISCAL COMM: Yes HEARING DATE: April 14, 2010 URGENCY: No CONSULTANT:Kathleen Chavira SUBJECT : California Dream Act KEY POLICY ISSUES Should AB 540 exemptions from non-resident tuition be extended to graduates of adult education and technical schools? Should AB 540 students be eligible to apply for and receive state administered and institutional financial aid benefits? Should they be eligible to receive Board of Governors fee waivers at the community colleges? SUMMARY This bill establishes the California Dream Act of 2010 which expands the existing exemption from non-resident tuition established by AB 540 (Firebaugh, Chapter 814, Statutes of 2001) to include students who graduate from technical schools and adult schools and expands eligibility for financial aid benefits to all students exempt from paying non-resident tuition under AB 540 as it: 1) Requests the University of California (UC) and requires the California State University (CSU) and the Board of Governors of the California Community Colleges (BOG CCCs) to establish procedures and forms to enable AB 540 students to be eligible to apply for and participate in all student financial aid administered by these segments. 2) Expands eligibility for state administered student financial aid programs to SB 1460 Page 2 include AB 540 students. 3) Requires the California Community Colleges to waive the student fees of any of AB 540 students who would otherwise qualify for such a waiver, as specified. BACKGROUND Current law provides for a variety of student financial aid programs including the Cal Grant programs, the Community College Board of Governors (BOG) fee waiver, a variety of systemwide and/or campus-specific grant and/or loan programs and other state administered financial aid programs. Participation in these programs is, among other criteria, typically limited to California residents. Current law, (established by AB 540, Firebaugh, 2001) exempts specified California nonresidents from paying nonresident tuition at UC, CSU and the CCCs if they meet all of the following: 1) Attended a California high school for three or more years. 2) Graduated from a California high school or attained an equivalent degree. 3) Registered or attended an accredited California higher education institution not before fall of the 2001-02 academic year. 4) Filed an affidavit, if an alien without lawful immigration status, stating that the student has filed an application to legalize their immigration status or will file such an application as soon as they are eligible to so do. (Education Code 68130) In general, these students are not currently eligible for federal, state and/or campus-based financial aid. Current law also designates secondary schools as high schools, technical schools, and adult schools. (EC 52) ANALYSIS SB 1460 Page 3 This bill establishes the California Dream Act of 2010. More specifically it: 1) Requests the University of California (UC) and requires the California State University (CSU) and the Board of Governors of the California Community Colleges (BOG CCCs) to establish procedures and forms to enable these students apply for and participate in all student aid programs administered by these segments, to the full extent permitted by federal law. 2) Expands the existing exemption from non-resident tuition to include students who attend and graduate from technical schools and adult schools. 3) Makes AB 540 students eligible to apply for and participate in any state administered student financial aid program to the full extent permitted by federal law. 4) Requires the California Community Colleges to waive the student fees of any person exempt from paying nonresident tuition and who would otherwise qualify for a waiver and declares this provision to be consistent with specified federal immigration law. STAFF COMMENTS 1) Need for the bill . California high school graduates who have been accepted to our premier public colleges and universities may not be recognized as state residents and may be ineligible for state financial aid. These students confront a difficult challenge in financing their college education because they are ineligible for any federal grants or loans and are unable to legally work. Additionally, according to the author, an undocumented student could compromise their future application for legalization if he/she submits a Federal Application for Student Aid (FAFSA). The California Dream Act would allow the state to fund its neediest students while awaiting legalization by requiring the creation of procedures to apply for financial assistance without the use of the FAFSA. 2) Related court case . In 2005, Martinez v. Regents of SB 1460 Page 4 the University of California et al. was filed against the UC, CSU, and the Board of Governors of the California Community Colleges, challenging the legality of AB 540. In October 2006 a California Superior Court ruled in favor of AB 540 stating its provisions were in accordance with federal law. In September 2008 a California Court of Appeal overturned the Superior Court's ruling in Martinez v.Regents and held that California state law authorizing in-state tuition to "illegal aliens" is preempted by federal immigration law and void. The decision was appealed and in December 2008 the Supreme Court of California agreed to review the case. It is unclear when the Supreme Court will review the case. The AB 540 exemption remains in effect at the UC, CSU, and the Community Colleges while the appeal is pending review. 3) How many students ? The most recent data from the UC, CSU and CCC indicate that overall, AB 540 students make up less than one percent of enrollment at all three systems. More specifically: At the UC, AB 540 students were less than three-tenths of a percent of 220,000 students in 2007-08. More than 68 percent of the 1,941 students were U.S. citizens or "documented" immigrants. At the CSU, 3,633 AB 540 students were less than one percent of the 440,000 students enrolled in the current school year. In the California Community Colleges, 34,057 students of the 2.89 million students enrolled in the 2008-09 school year were granted AB 540 waivers, again, less than one percent. The CSU and the CCC do not identify the immigration status of AB 540 students, but believe that undocumented students make up a larger proportion of these students than they do at the UC. 1) What financial aid programs would these students be eligible for ? The majority of student financial aid SB 1460 Page 5 is provided through either federal or state administered programs (e.g. Pell grants which is a federal program or Cal grants which is a state program). However, in addition to this aid, individual campuses also directly administer some financial aid programs including specialized grants, loans and work study as well as aid derived from student fees (typically 20%- 30% of student fee revenue is set aside for institutional financial aid at UC and CSU). This bill would make AB 540 students eligible for Cal Grants, institutional aid at the UC and CSU, Board of Governors fee waivers at the community colleges, and any other state administered programs 2) Adding adult schools . High school students who combine attendance at a high school with attendance at an adult school may jeopardize their eligibility for the nonresident tuition exemption if their attendance at the high school is for less than three years. This bill addresses this situation by allowing the three years of attendance to be at either a high school, adult school, or any combination thereof. As drafted this would also enable adult nonresidents to become eligible by taking a single class for three years at an adult school. Staff recommends the bill be amended to insert on Page 4, line 11, "at least one year of which shall have been at a high school." in order to narrow the application of the bill's provisions to student nonresidents who have attended some high school in California. 3) Mandated costs. Legislative counsel has identified mandated costs, likely as the result of the requirement imposed upon the California Community Colleges that fee waivers be granted to qualifying AB 540 students. 4) Technical amendment . Consistent with prior versions of this bill, staff recommends that the bill be amended on page 3, line 28 to add, "The Legislature finds and declares that this section is a state law within the meaning of Section 1621(d) of Title 8 of the United State Code." SB 1460 Page 6 5) Prior legislation . Since 2003, the Legislature has considered several bills which were substantively similar to this measure. This committee heard SB 160 (Cedillo, 2005), SB 1 (Cedillo, 2007), both of which were almost identical this measure and were ultimately vetoed by the Governor. The most recent similar bill to go before the Governor was SB 1301 (Cedillo, 2008), heard and passed (6-2) by the Senate Education Committee on April 2, 2008. The Governor's veto message read: I share the author's goal of making affordable education available to all California students, but given the precarious fiscal condition the state faces at this time, it would not be prudent to place additional demands on our limited financial aid resources as specified in this bill. For this reason, I am unable to sign this bill." This committee also heard SB 160 (Cedillo, 2009), AB 2083 (Nunez, 2008), SB 160 (Cedillo, 2007), all of which contained similar provisions to this bill and all of which were ultimately held under submission in the Senate Appropriations Committee. 6) Policy arguments . Proponents argue that this bill would promote economic development in our state by encouraging these students to pursue a higher education and become part of the educated workforce, thus improving the life of all Californians. Additionally, many of these students are outstanding, motivated individuals, who face insurmountable economic and educational challenges as they strive to reach their educational goals and their accomplishments should not be disregarded or their future jeopardized because of their legal status. Opponents argue that the state has limited funds available to provide financial aid, that this bill would encourage illegal immigration, and that increasing financial aid benefits will place greater burdens on California taxpayers when we are facing a $20 billion structural budget deficit. SUPPORT SB 1460 Page 7 American Civil Liberties Union Board of Directors of the California Community College League California Catholic Conference, Inc. California Communities United Institute California Federation of Teachers California State University Chief Executive Officers of the California Community College League Hispanic Association of Colleges and Universities Los Angeles Community College District Los Angeles Unified School District Rio Hondo Community College District San Jose-Evergreen Community College District OPPOSITION California Concerned Women for America Howard Jarvis Taxpayers Association