BILL ANALYSIS Ó AB 130 Page 1 Date of Hearing: April 13, 2011 ASSEMBLY COMMITTEE ON APPROPRIATIONS Felipe Fuentes, Chair AB 130 (Cedillo) - As Amended: April 6, 2011 Policy Committee: Higher EducationVote:6-3 Urgency: No State Mandated Local Program: No Reimbursable: SUMMARY This bill enacts the California Dream Act of 2011, which, effective January 1, 2012 makes a student eligible for the AB 540 exemption-which allows certain nonresident public postsecondary students to pay in-state tuition or fees-eligible to receive a scholarship, derived from nonstate funds, received for the purpose of scholarships by the California public postsecondary institution they are attending. FISCAL EFFECT No direct state costs. The bill could result in a reallocation of any available scholarship monies by the public universities and college students. COMMENTS 1)Background . Students eligible for resident tuition under AB 540 are typically persons 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. According to the segments, in 2009-10, enrollment of AB 540 students was: 1,941 at UC (of these 32% were undocumented immigrants); 3,633 at CSU; and 36,203 at CCC. 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 than they do at UC. In 2010-11, annual nonresident undergraduate student tuition amounted to approximately $22,879 at UC, $10,000 at CSU, and $4,800 at CCC. AB 130 Page 2 2)Privately-Funded Scholarships . According to UC, it cannot award its own funds to undocumented students, whether they are derived from private gifts to the university, tuition revenue, or any other source. When donors want to help these students, campuses must therefore refer the donor to external organizations that help undocumented students. AB 130 makes AB 540 students eligible for scholarships derived from nonstate funds that the campuses receive for scholarships. 3)Related Legislation . AB 130 (Cedillo), also on today's committee agenda, makes AB 540 students eligible for all state-administered financial aid programs. 4)Prior Legislation . Numerous bills have sought to expand financial aid to AB 540 students. Most recently, in 2010, SB 1460 (Cedillo), which dealt with institutional financial aid and the adult school provisions, and AB 1413 (Fuentes), which dealt with Student Aid Commission programs, were vetoed by Governor Schwarzenegger, mainly for financial reasons. SB 1301 (Cedillo) of 2008, which only dealt with UC and CSU institutional aid, was vetoed. SB 1 (Cedillo) of 2007, which made AB 540 students eligible for Cal Grant Entitlement Awards and community college fee waivers, was also vetoed for financial reasons, as was SB 160 (Cedillo) of 2005. In addition, SB 160 (Cedillo) of 2009, AB 2083 (Nunez) of 2008, and SB 160 (Cedillo) of 2007 were all held on Suspense in Senate Appropriations. Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081