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 




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          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.





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          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 




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               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 




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               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 




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               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 




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               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 




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          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.




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