BILL ANALYSIS                                                                                                                                                                                                    


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                                 THIRD READING

          Bill No:  SB 1460
          Author:   Cedillo (D), et al
          Amended:  6/2/10
          Vote:     21

           SENATE EDUCATION COMMITTEE  :  6-2, 4/14/10
          AYES:  Romero, Alquist, Hancock, Liu, Price, Simitian
          NOES:  Huff, Wyland
          NO VOTE RECORDED:  Maldonado

           SENATE APPROPRIATIONS COMMITTEE  :  7-3, 5/27/10
          AYES:  Kehoe, Alquist, Corbett, Leno, Price, Wolk, Yee
          NOES:  Denham, Walters, Wyland
          NO VOTE RECORDED:  Cox

           SUBJECT  :    California Dream Act of 2010

           SOURCE  :     Author

           DIGEST  :    This bill (1) establishes, beginning January 1,  
          2011, the California Dream Act for the purposes of  
          expanding eligibility for state-administered financial aid  
          to students exempted from paying nonresident tuition  
          through specified provisions of law and (2) extends the  
          nonresident tuition exemption to graduates of adult  
          education and technical schools, provided the individual  
          spent at least one year in a California high school.

           ANALYSIS  :    Current law provides for a variety of student  
          financial aid programs including the Cal Grant programs,  


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          the Community College Board of Governors 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), Chapter  
          814, Statutes of 2001, exempts specified California  
          nonresidents from paying nonresident tuition at the  
          University of California (UC), California State University  
          (CSU) and the California Community Colleges (CCC) if they  
          meet all of the following:

          1.Attended a California high school for three or more  

          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  
            do so.

          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.

          This bill establishes, beginning January 1, 2011, the  
          California Dream Act of 2010.  Specifically, this bill:

          1.Requests the Regents of the UC and requires the Trustees  
            of the CSU and the Board of Governors of the CCC,  
            beginning July 1, 2011, to establish procedures and forms  
            to enable AB 540 students to apply for and participate in  
            all student aid programs administered by these segments,  
            to the full extent permitted by federal law.


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          2.Provides, beginning January 1, 2011, a student attending  
            the CSU, the CCC, or the UC, who is exempt from paying  
            nonresident tuition, to be eligible to receive a  
            scholarship that is derived from nonstate funds received,  
            for the purpose of scholarships.

          2.Repeals, on July 1, 2011, the existing exemption, from  
            non-resident tuition to include students who have  
            attended, for three or more years, and graduated from,  
            secondary school in California, and persons attending and  
            graduating from California technical schools and adult  

          3.Expands, beginning July 1, 2011, the exemption from  
            non-resident tuition to include students who have  
            attended, for three or more years, at least one of which  
            shall be in a high school, and graduated from, secondary  
            school in California, and persons attending and  
            graduating from California technical schools and adult  

          3.Beginning July 1, 2011, 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.Beginning July 1, 2011, requires the CCC 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  
            immigration law.

          5.Finds and declares that this bill is a state law within  
            the meaning of subsection (d) of Section 1621 of Title 8  
            of the United States Code.


           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  


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          are ineligible for any federal grants or loans and are  
          unable to legally work.  Additionally, according to the  
          author's office, 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 allows 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.
           The majority of student financial aid 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 percent to 30 percent of student fee revenue is set  
          aside for institutional financial aid at UC and CSU.  This  
          bill makes 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 program.

           Prior Legislation

           SB 160 (Cedillo), 2005-06 Session, was substantively  
          similar to this bill.  SB 160 passed the Senate with a vote  
          of 24-15 on 8/31/05 and was vetoed by the Governor.

          SB 1 (Cedillo), 2007-08 Session, was almost identical to  
          this bill.  SB 1 passed the Senate with a vote of 24-15 on  
          9/12/07 and was vetoed by the Governor.

          SB 1301 (Cedillo), 2007-08 Session, was almost identical to  
          this bill.  SB 1301 passed the Senate with a vote of 23-13  
          on 5/12/08 and was also vetoed by the Governor.  In his  
          veto message, the Governor stated "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."


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           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  Yes

                          Fiscal Impact (in thousands)

           Major Provisions             2010-11             2011-12          
              2012-13           Fund

           Cal Grants                                               
          $38,000           $38,000       General

          CCC fee waivers             $2,350            $ 4,700        
               $ 4,700       General*

          UC aid                            $   900              
          $1,800             $1,800        General*

          CSU aid                          $1,300             $2,600   
                     $2,600        General**

            *Counts toward meeting the Proposition 98 minimum funding  
          **Combination of General Fund support and fee revenue

           SUPPORT  :   (Verified  6/2/10)

          American Civil Liberties Union
          Board of Directors of the California Community College  
          California Catholic Conference, Inc.
          California Communities United Institute
          California Federation of Teachers
          California Postsecondary Education Commission
          California State University
          California Teachers Association
          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
          University of California Student Association


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           OPPOSITION  :    (Verified  6/2/10)

          California Concerned Women for America
          Howard Jarvis Taxpayers Association

           ARGUMENTS IN SUPPORT  :    Proponents argue that this bill  
          promotes 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 education goals and their accomplishments should not  
          be disregarded or their future jeopardized because of their  
          legal status.

           ARGUMENTS IN OPPOSITION  :    Opponents argue that the state  
          has limited funds available to provide financial aid, that  
          this bill encourages illegal immigration, and that  
          increasing financial aid benefits will place greater  
          burdens on California taxpayers when California is facing a  
          $20 billion structural budget deficit.  

          CPM:cm  6/2/10   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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