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