BILL ANALYSIS Ó ------------------------------------------------------------ |SENATE RULES COMMITTEE | AB 131| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ THIRD READING Bill No: AB 131 Author: Cedillo (D) Amended: 5/27/11 in Assembly Vote: 21 SENATE EDUCATION COMMITTEE : 7-2, 6/22/11 AYES: Lowenthal, Alquist, Hancock, Liu, Price, Simitian, Vargas NOES: Blakeslee, Huff NO VOTE RECORDED: Runner, Vacancy SENATE APPROPRIATIONS COMMITTEE : 6-3, 8/25/11 AYES: Kehoe, Alquist, Lieu, Pavley, Price, Steinberg NOES: Walters, Emmerson, Runner ASSEMBLY FLOOR : 50-27, 6/1/11 - See last page for vote SUBJECT : California Dream Act of 2011 SOURCE : Author DIGEST : 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. CONTINUED AB 131 Page 2 ANALYSIS : Existing law provides for a variety of student financial aid 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. Existing law, established by AB 540 (Firebaugh), exempts specified California nonresidents from paying nonresident tuition at University of California (UC), California State University (CSU) and the California Community Colleges (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. In general, these students are not currently eligible for federal, state and/or campus-based financial aid. Existing law also designates secondary schools as high schools, technical schools, and adult schools. This bill establishes the California Dream Act of 2011. Specifically, this bill: 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. CONTINUED AB 131 Page 3 2. Beginning January 1, 2013: A. Requests the UC and requires the CSU and the BOG 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 CCC 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. Comments Related court case . In 2005, Martinez v. Regents of the University of California et al. was filed against the UC, CSU, and the BOG of the CCC, 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 CONTINUED AB 131 Page 4 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. 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 percent- 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, BOG fee waivers at the community colleges, and any other state administered programs. 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 CONTINUED AB 131 Page 5 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. Adding adult schools . High school students who 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. 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: 1. 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. 2. At the CSU, 3,633 AB 540 students were less than one percent of the 440,000 students enrolled in the current school year. 3. In the CCC, 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. Prior/Related Legislation AB 130 (Cedillo), Chapter 93, Statutes of 2011, effective July 1, 2012, requires that AB 540 students attending CSU, CONTINUED AB 131 Page 6 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. Passed the Senate with a vote of 26-11 on July 14, 2011. SB 1460 (Cedillo), 2009-10 Session, and AB 1432 (Fuentes), 2009-10 Session, 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), 2009-10 Session, would have expanded eligibility for state postsecondary institutional financial aid programs to include students who are exempted from paying nonresident tuition due to specified provisions in law. (Held under submission in Senate Appropriations Committee) SB 1 (Cedillo), 2007-09 Session, would have made California high school graduates who meet the non-resident in-state tuition requirements eligible for a fee waiver at community colleges and able to participate in the Cal Grant program. Passed the Senate with a vote of 24-7 on September 12, 2007. The bill was subsequently vetoed by then-Governor Schwarzenegger, whose veto message read: CONTINUED AB 131 Page 7 "At a time when segments of California public higher education, the University of California and the California State University, are raising fees on all students attending college in order to maintain the quality of education provided, it would not be prudent to place additional strain on the General Fund to accord the new benefits of providing state subsidized financial aid to students without lawful immigration status. Under existing law, undocumented students, who meet the required criteria, already qualify for the lower in-state tuition rate while attending California public colleges and universities." SB 160 (Cedillo), 2007-08 Session, would have expanded eligibility for state postsecondary financial aid and community college fee waiver programs to include students who are exempted from paying nonresident tuition due to specified provisions in law. (Held under submission in Senate Appropriations Committee) AB 2083 (Nunez), 2007-08 Session, would have requested the UC and requires the CSU, and the BOG of the CCC to establish procedures and forms to enable students who are exempt from paying nonresident tuition, as specified, to be eligible to receive institutional financial aid awards. (Died in Senate Rules Committee) SB 1301 (Cedillo), 2007-09 Session, would have requested the UC, and would have required the CSU, and the BOG of the CCC, to establish procedures and forms to enable students who are exempt from paying nonresident tuition, as specified, to be eligible to receive institutional financial aid awards. Passed the Senate with a vote of 23-13 on May 12, 2008. The bill was subsequently vetoed by then-Governor Schwarzenegger, whose veto message read: "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." CONTINUED AB 131 Page 8 SB 160 (Cedillo), 2005-06 Session, would have requested the UC and required the CSU, and CCCs to establish procedures and forms to enable students who are exempt from paying nonresident tuition, based on their three-year attendance at, and graduation from, a California high school, to participate in all student aid programs administered by these segments. The bill passed the Senate with a vote of 24-15 on August 31, 2006. The bill was subsequently vetoed by then-Governor Schwarzenegger, whose veto message read, in part: "Current law allows undocumented students who have attended a California high school for three years and graduate from a California high school to attend a state college and get a reduced in state tuition rate but not be eligible for public financial aid dollars. California has over 100,000 students here legally who apply annually for financial aid to attend college, and our state has limited funds available for this important purpose. "While I do not believe that undocumented children should be penalized for the acts of their parents, this bill would penalize students here legally by reducing the financial aid they rely on to allow them to go to college and pursue their dreams." FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: Yes According to the Senate Appropriations Committee: Fiscal Impact (in thousands) Major Provisions 2011-12 2012-13 2013-14 Fund CSAC administration $733 $252* General Cal Grants $13,000* General Institutional aid: -UC up to 2,300 $3,800 -$4,600* General -CSU up to $3,800 CONTINUED AB 131 Page 9 $7,600*General CCC fee waivers $3,750-$7,500* $7,500-$15,000* General** * on-going, annual costs, based on current estimated undocumented student enrollment rates. ** Counts toward meeting the Proposition 98 minimum funding guarantee. SUPPORT : (Verified 8/30/11) Advancement Project AltaMed American Civil Liberties Union American Federation of State, County and Municipal Employees, AFL-CIO American Federation of Teachers, Local 2121 Anti-Defamation League Association of Independent California Colleges and Universities California Association of Student Financial Aid Administrators California Catholic Conference California Communities United Institute California Community College Chancellor's Office California Council For Adult Education California Democratic Party California Dream Network California Federation of Teachers California Immigrant Policy Center California League of United Latin American Citizens California Postsecondary Education Commission California School Employees Association, AFL-CIO California State Student Association California State University California Student Aid Commission California Teachers Association Camino Nuevo Charter Academy Chicano Federation of San Diego County Chicano Latino Caucus of the California Democratic Party Cities of Berkeley, Oakland, San Pablo, and Watsonville Clergy and Laity United for Economic Justice Coalition for Humane Immigrant Rights of Los Angeles CONTINUED AB 131 Page 10 Community Charter Middle School Community College League of California Equality California Faculty Association of California Community Colleges Fontana Unified School District Friends Committee on Legislation of California Gay-Straight Alliance Network Hartnell College Hispanas Organized for Political Equality Hispanic Association of Colleges and Universities Korean Resource Center La Raza Law Students Association at University of California, Davis Latino Equality Alliance Lieutenant Governor Gavin Newsom Los Angeles Chamber of Commerce Los Angeles Community College District Los Angeles County Democratic Party Los Angeles Leadership Academy MAAC Community Charter School Mayor of Los Angeles, Antonio Villaraigosa Mexican American Legal Defense and Educational Fund National Council of La Raza National Korean American Service and Education Consortium Para Los Niños Peralta Community College District Rio Hondo Community College District San Diego Community College District San Jose-Evergreen Community College District Santa Rosa Charter Academy Service Employees International Union Service Employees International Union, United Long Term Care Workers Services, Immigrant Rights & Education Network Silicon Valley Leadership Group State Superintendent of Public Instruction, Tom Torlakson Student Senate for California Community Colleges UAW Local 2865 University of California University of California Student Association University of California, Berkeley Graduate Assembly Yolo County Supervisor, Jim Provenza Youth Speak Collective CONTINUED AB 131 Page 11 OPPOSITION : (Verified 8/30/11) California Right to Life Committee, Inc. Californians for Population Stabilization Concerned Women for America of California ARGUMENTS IN SUPPORT : The author's office is concerned that California high school graduates who have been accepted to our premier public colleges and universities may be ineligible for state financial aid. According to the author's office, 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 allows 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. ARGUMENTS IN OPPOSITION : In opposition, California for Population Stabilization state: "California also engages in an annual struggle to achieve a balanced budget. The state must balance its limited resources with virtually unlimited demands. Now the Assembly has voted to give millions of dollars in financial assistance to illegal immigrants who already receive heavily subsidized, in-state tuition rates in their higher education. "Not only is this an inappropriate use of taxpayer dollars, but it is also an enticement to further illegal immigration and the negative economic consequences that imposes on the state. California is suffering greatly from uncontrolled immigration. It makes no sense that taxpayers should have to subsidize an activity that damages our environment, hampers the economy, and strains the state budget." The California Right to Life Committee, Inc. states, in opposition: "AB 131 would have the voter believe that this is fair CONTINUED AB 131 Page 12 and equitable for students who were brought to CA illegally by parents without their understanding of their own status. However, it is unfair and inequitable to thwart the goals of legal residents and California born students who desire to attend a California college or university. "Financial realities show that cut-backs in funding continue and that freshman attendance numbers had to be decreased. Therefore, encouraging illegal status students to expect to have easy access to student aid for CA colleges and universities is actually not fair to them. It is definitely not fair to our own California resident students to deprive them of this assistance for our tax-payer supported institutions in order to award illegal status students with those funds. In actually, it is not fair to the illegal status student to award higher education diplomas to them when they are not able to be employed once they graduate." ASSEMBLY FLOOR : 50-27, 6/1/11 AYES: Alejo, Allen, Ammiano, Atkins, Beall, Block, Blumenfield, Bonilla, Bradford, Brownley, Buchanan, Butler, Charles Calderon, Campos, Carter, Cedillo, Chesbro, Davis, Dickinson, Eng, Feuer, Fong, Fuentes, Furutani, Galgiani, Gordon, Hall, Hayashi, Roger Hernández, Hill, Hueso, Huffman, Lara, Bonnie Lowenthal, Ma, Mendoza, Mitchell, Monning, Pan, Perea, V. Manuel Pérez, Portantino, Skinner, Solorio, Swanson, Torres, Wieckowski, Williams, Yamada, John A. Pérez NOES: Achadjian, Bill Berryhill, Conway, Cook, Donnelly, Fletcher, Beth Gaines, Garrick, Grove, Hagman, Halderman, Harkey, Jeffries, Jones, Knight, Logue, Mansoor, Miller, Morrell, Nestande, Nielsen, Norby, Olsen, Silva, Smyth, Valadao, Wagner NO VOTE RECORDED: Gatto, Gorell, Huber CPM:kc 8/30/11 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED AB 131 Page 13 CONTINUED