BILL ANALYSIS ------------------------------------------------------------ |SENATE RULES COMMITTEE | SB 1460| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ VETO Bill No: SB 1460 Author: Cedillo (D), et al Amended: 8/20/10 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 SENATE FLOOR : 24-9, 6/3/10 AYES: Alquist, Calderon, Cedillo, Corbett, Correa, DeSaulnier, Ducheny, Florez, Hancock, Kehoe, Leno, Liu, Lowenthal, Negrete McLeod, Oropeza, Padilla, Pavley, Price, Romero, Simitian, Steinberg, Wolk, Wright, Yee NOES: Ashburn, Cogdill, Denham, Dutton, Huff, Runner, Strickland, Walters, Wyland NO VOTE RECORDED: Aanestad, Cox, Harman, Hollingsworth, Wiggins, Vacancy, Vacancy ASSEMBLY FLOOR : 48-27, 8/31/10 - See last page for vote SENATE FLOOR : 21-12, 8/31/10 AYES: Alquist, Calderon, Cedillo, Corbett, Correa, Ducheny, Florez, Hancock, Kehoe, Leno, Liu, Lowenthal, Negrete McLeod, Padilla, Pavley, Price, Romero, Steinberg, Wolk, Wright, Yee CONTINUED SB 1460 Page 2 NOES: Aanestad, Ashburn, Blakeslee, Cogdill, Dutton, Emmerson, Harman, Hollingsworth, Huff, Runner, Walters, Wyland NO VOTE RECORDED: Denham, DeSaulnier, Oropeza, Simitian, Strickland, Wiggins, Vacancy SUBJECT : California Dream Act of 2010 SOURCE : Author DIGEST : This bill (1) establishes, beginning July 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. Assembly Amendments (1) delete provision allowing AB 540 students to apply for and participate in any state administered financial aid program to the full extent permitted by federal law, (2) prohibit the number of financial aid awards received by California resident students from financial aid programs administered by the segments from being diminished as a result of the application of the requirement regarding establishment of procedures and forms to enable AB 540 students to apply for and participate in student aid programs, and (3) provide specified legal protections to the University of California, the California State University and the California Community Colleges if a state court finds this bill or any similar regulation unlawful. ANALYSIS : Current law provides for a variety of student financial aid programs including the Cal Grant programs, 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. CONTINUED SB 1460 Page 3 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 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 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, as provided. 2.Specifies that the number of financial aid awards received by California resident students from financial programs administered by the segments shall not be diminished as a result of the application of #1 above. CONTINUED SB 1460 Page 4 3.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. 4.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 schools. 5.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 schools. 6.Provides specified legal protections to UC, CSU and CCC if a state court finds this bill or any similar regulation unlawful. 7.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. Comments This bill is an effort to expand the availability of financial aid to those UC, SCU, and CCC students eligible for nonresident tuition status under AB 540. These students are typically aliens without lawful immigration status or United States citizens or Permanent Residents who are residents of another state and would be ineligible for state-administered or campus-based financial aid programs without the provisions of AB 540. Federal law prohibits undocumented students from receiving any aid from the federal government, such as Pell grants and federal student loans, and prevents states from offering public benefits to undocumented students unless CONTINUED SB 1460 Page 5 the state passes a statute expressly qualifying undocumented students for such benefits. Students who receive a waiver of non-resident tuition at UC, CSU, and CCC still face significant costs, including resident fees, books, supplies, food, rent, transportation, and other miscellaneous items. The California Student Aid Commission estimates the nine-month cost of education in 2010-11 for California students living off-campus to be $16,497, in addition to system wide and campus fees. According to the segments, AB 540 students make up less than one percent of enrollment at all three systems, as follows: UC enrolled 1,941 students (3/10 percent of the student body and 68 percent of the AB 540 students were U.S. citizens or "documented" immigrants); CSU enrolled 3,633 Ab 540 students (less than one percent of the student body); and CCC enrolled 34,057 AB 540 students (lees than one percent of the student body). CSU and CCC do not identify the immigration status of AB 540 students but believe that undocumented students make up a larger proportion of these students then they do at UC. 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'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 CONTINUED SB 1460 Page 6 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." 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 CONTINUED SB 1460 Page 7 $1,800 $1,800 General* CSU aid $1,300 $2,600 $2,600 General** *Counts toward meeting the Proposition 98 minimum funding guarantee. **Combination of General Fund support and fee revenue SUPPORT : (Verified 8/26/10) 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 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 OPPOSITION : (Verified 8/26/10) 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. CONTINUED SB 1460 Page 8 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. GOVERNOR'S VETO MESSAGE : "I am returning Senate Bill 1460 without my signature. I have always wholeheartedly supported the policy of making higher education opportunities as affordable as possible for all California's students. Our state's university and community college systems are amongst the finest in the country and should be made accessible to those seeking a better life through higher education. Unfortunately, given the precarious fiscal situation that the state faces, it would not be practical to adopt a new policy that could limit the financial aid available to students that are in California legally, in order to provide that benefit to those students who are not. Since the beginning of the year, I have committed to provide the highest amount of funding for higher education, including for financial aid to needy students, that I believe is prudent given all of the competing interest for limited resources. Given the difficult decisions that are yet to be made to enact a state budget, I am still hopeful that the funding level that I have proposed for higher education will still be enacted. However, with that uncertainty, coupled with the ongoing fiscal liabilities California will continue to face in the coming years, the State needs to be especially cautious in even considering enacting a measure like this. For these reasons, I am unable to sign this bill." CONTINUED SB 1460 Page 9 ASSEMBLY FLOOR : AYES: Ammiano, Arambula, Bass, Beall, Block, Blumenfield, Bradford, Brownley, Caballero, Charles Calderon, Carter, Chesbro, Coto, Davis, De La Torre, De Leon, Eng, Evans, Feuer, Fong, Fuentes, Furutani, Galgiani, Hall, Hayashi, Hernandez, Hill, Huffman, Jones, Lieu, Bonnie Lowenthal, Ma, Mendoza, Monning, Nava, V. Manuel Perez, Portantino, Ruskin, Salas, Saldana, Skinner, Solorio, Swanson, Torlakson, Torres, Torrico, Yamada, John A. Perez NOES: Adams, Anderson, Bill Berryhill, Tom Berryhill, Conway, Cook, DeVore, Fletcher, Fuller, Gaines, Garrick, Gatto, Gilmore, Hagman, Harkey, Huber, Jeffries, Knight, Logue, Miller, Nestande, Niello, Nielsen, Silva, Smyth, Audra Strickland, Villines NO VOTE RECORDED: Buchanan, Norby, Tran, Vacancy, Vacancy CPM:cm 10/5/10 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED