BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      



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          |SENATE RULES COMMITTEE            |                   AB 131|
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                                 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.

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           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.

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          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 

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          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 

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          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, 

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          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:  

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            "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."


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          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           

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          $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 

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          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


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           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 
                               
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            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

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