BILL ANALYSIS Ó SENATE COMMITTEE ON EDUCATION Alan Lowenthal, Chair 2011-2012 Regular Session BILL NO: AB 131 AUTHOR: Cedillo AMENDED: May 27, 2011 FISCAL COMM: Yes HEARING DATE: June 22, 2011 URGENCY: No CONSULTANT:Kathleen Chavira SUBJECT : California Dream Act of 2011. SUMMARY This bill establishes the California Dream Act of 2011 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, beginning July 1, 2012, 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 (CCC), and the California Student Aid Commission (CSAC), beginning July 1, 2012, 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 include AB 540 students. 3) Requires the California Community Colleges to waive the student fees of any AB 540 students who would otherwise qualify for such a waiver, as specified. BACKGROUND Current law provides for a variety of student financial aid AB 131 Page 2 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, Chapter 814, Statutes of 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 This bill establishes the California Dream Act of 2011. More specifically it: 1) Expands the existing exemption from non-resident tuition established by AB 540 to include students who attend and graduate from technical schools and adult schools, if at least one of those years included attendance at a high school. AB 131 Page 3 2) Beginning July 1, 2012: a) Requests the UC and requires the CSU and the Board of Governors of the CCC 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. b) Prohibits 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 (a). c) 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. d) Requires the California Student Aid Commission to establish procedures and forms that enable AB 540 students to apply for and participate in all state administered student financial aid programs to the full extent permitted by federal law. e) Prohibits AB 540 students from being eligible for Competitive Cal Grant A and B awards unless funding remains available after all other eligible California students have received awards. f) Requires the California Community Colleges to waive the student fees of any person exempt from paying nonresident tuition under the provisions of AB 540 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 . The author is concerned that California high school graduates who have been AB 131 Page 4 accepted to our premier public colleges and universities may be ineligible for state financial aid. According to the author, 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. This bill would allow the state to fund its neediest students while they await legalization by authorizing their eligibility for state and campus administered student aid programs and require the creation of procedures to apply for this aid using state-developed forms. 2) Related court case . In 2005, Martinez v. Regents of 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. In November 2010, the California Supreme Court reversed the judgment of the Court of Appeal, finding that the provisions of AB 540 did not violate the federal immigration law and concluding that the plaintiffs' remaining challenges to the provisions of AB 540 lacked merit. Plaintiffs then filed a petition for a writ of certiorari with the U.S. Supreme Court seeking further review. On June 6, 2011, the U.S. Supreme Court announced that it had declined to review the California Supreme Court's unanimous decision upholding the legality of AB 540. 3) Similar legislation . AB 130 (Cedillo), effective July 1, 2012, requires that AB 540 students attending CSU, the CCC, or the UC be eligible to receive a scholarship derived from non-state funds (received for the purpose of scholarships) at the segment where the student is enrolled. AB 130 was heard and passed by AB 131 Page 5 this committee on June 8, 2011, by a vote of 7-3. AB 130 is currently awaiting action in the Senate Appropriations Committee. Staff notes that both AB 130 and AB 131 propose amendments to a section of existing law which extends immunity from monetary damages to the public segments as a result of implementing each of the bills' provisions. Should these bills be double joined to ensure that no unintended chaptering out of provisions occurs? 4) What financial aid programs would these students be eligible for ? 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%- 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. 5) Limits on awards . This bill specifically provides that the number of awards received by California residents through campus administered programs not be diminished as a result of expanding access to these programs to include AB 540 students. While the number of institutional aid awards cannot be diminished, the bill could result in a change in the mix of recipients and a change in the amounts received by students. This bill also makes provision for AB 540 students to be eligible for Competitive Cal Grant A and B awards once all California students have received an award. Given that demand for the Competitive Cal Grant far exceeds the amount of funding typically provided it is unlikely that AB 540 students would receive funds from this program. 6) Adding adult schools . High school students who AB 131 Page 6 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 requiring one year of attendance at a high school, but allowing the remaining two years of attendance to be at a high school, adult school, or technical school, or any combination thereof. 7) 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. 8) How many students ? 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: a) 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. b) At the CSU, 3,633 AB 540 students were less than one percent of the 440,000 students enrolled in the current school year. c) 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. 9) Prior legislation . Since 2003, the Legislature has considered several bills which have attempted to ensure that AB 540 students were able to receive AB 131 Page 7 financial assistance to attend college. The most recent efforts included SB 1460 (Cedillo, 2010) and AB 1432 (Fuentes, 2010) which were substantively similar to each other in that they proposed the expansion of the existing exemption from nonresident tuition established by AB 540 to include students who graduated from technical schools and adult schools and proposed expansion of eligibility for financial aid benefits to all students exempt from paying nonresident tuition under AB 540. Both bills were ultimately vetoed by Governor Schwarzenegger whose veto message read, in pertinent part: 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. Other similar Dream Act measures include: SB 160 (Cedillo, 2009) AB 2083 (Nunez, 2008) SB 160 (Cedillo, 2007) SB 1 (Cedillo, 2007) SB 1301 (Cedillo, 2008) SB 160 (Cedillo, 2005) SUPPORT Advancement Project AltaMed Health Services Corporation American Federation of State, County and Municipal AB 131 Page 8 Employees, AFL-CIO California Community College Chancellor's Office California Federation of Teachers California Immigrant Policy Center California Postsecondary Education Commission California School Employees Association California State Student Association California Teachers Association's Community College Association Camino Nuevo Charter Academy Chicano Federation of San Diego County City of Long Beach City of Oakland City of San Pablo City Council Community Charter Middle School Community College League of California Community College League of California Fontana Unified School District Gay-Straight Alliance Network Hartnell College Hispanic Association of Colleges and Universities Korean Resource Center of Los Angeles Latino Equality Alliance Los Angeles Area Chamber of Commerce Los Angeles Community College District Los Angeles County Democratic Party Los Angeles Leadership Academy MAAC Community Charter School National Association of Social Workers, California Chapter National Council of La Raza National Korean American Service & Education Consortium Para Los Ninos Rio Hondo Community College District San Diego Community College District San Jose-Evergreen Community College District Service Employees International Union Local United Long Term Care Workers State Superintendent of Public Instruction Tom Torlakson Student Senate for California Community Colleges University of California University of California Student Association OPPOSITION Californians for Population Stabilization California Right to Life Committee, Inc. AB 131 Page 9