BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 844
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          Date of Hearing:   May 3, 2011

                       ASSEMBLY COMMITTEE ON HIGHER EDUCATION
                                 Marty Block, Chair
                     AB 844 (Lara) - As Amended:  April 26, 2011
           
          SUBJECT  :   Student government: students qualifying for exemption 
          from nonresident tuition.

           SUMMARY  :   Allows a student who is without lawful immigration 
          status or exempt from paying nonresident tuition under specified 
          provisions of law Ýauthorized by AB 540 (Firebaugh), Chapter 
          814, Statutes of 2001] to serve in student government at the 
          California State University (CSU) or the California Community 
          Colleges (CCC) and to receive any grant, scholarship, fee 
          waiver, or reimbursement for expenses incurred connected with 
          that service to the full extent consistent with existing law.  

           EXISTING LAW  :

          1)Exempts specified California nonresidents from paying 
            nonresident tuition at the University of California (UC), CSU, 
            and CCC, also known as the AB 540 nonresident tuition waiver, 
            if they meet all of the following (Education Code § 68130.5):

             a)   Attended a California high school for three or more 
               years;

             b)   Graduated from a California high school or attained an 
               equivalent degree; 

             c)   Registered or attended an accredited California higher 
               education institution beginning after fall of the 2001-02 
               academic year; and,

             d)   If an alien without lawful immigration status, have 
               filed an affidavit stating that the student has filed an 
               application to legalize his or her immigration status or 
               will file such an application as soon as he or she is 
               eligible to so do.

          2)Authorizes the establishment of a CSU student body 
            organization and associated fees.  (EC § 89300 et sec)

          3)Authorizes the establishment of CCC student body organizations 








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            and associated fees. (EC § 76060 et sec)

           FISCAL EFFECT  :   Unknown.  This bill is tagged nonfiscal by 
          Legislative Counsel.

           COMMENTS  :    Background  :  CSU provides funds to support its 
          student government organizations, including stipends for student 
          leaders and reimbursement for expenses incurred as part of their 
          duties.  While the CCC Chancellor's Office provides funds to 
          support its statewide student organizations, it does not pay its 
          student representatives, and CCC campuses do not pay local 
          student leaders. 

          According to CSU officials, the stipend received by Associated 
          Students, Inc. (ASI) presidents is considered payment for 
          services, i.e., employment, and the student must be able to 
          demonstrate his or her legal status and provide a social 
          security number on the I-9 and the W-2 forms, respectively.  CSU 
          could provide the stipend via a nonwage payment using the 1099 
          form, but this also requires a social security number and 
          creates a tax liability for the student.  

           Fresno State  .  In November 2010, the Fresno State University ASI 
          President, Pedro Ramirez, publicly identified himself as an 
          undocumented student.  According to Fresno State President John 
          Welty, shortly after his election, Mr. Ramirez personally 
          notified President Welty and ASI advisers about his immigration 
          status and volunteered to serve without pay as president, since 
          under federal law he cannot be employed in the United States.  
          According to newspaper reports, Mr. Ramirez has received a $50 
          stipend for cellular telephone expenses.

           Need for this bill  .  According to the author, while federal law 
          prohibits employment of an undocumented student, there is much 
          more latitude in allowing an undocumented student to be 
          compensated if the stipend is going to be given as a grant or 
          scholarship from the campus.  The author states, "This bill does 
          not require a school or university to employ a student leader.  
          The bill focuses on providing student leaders with a grant or 
          scholarship, regardless of the student's legal status.  Since no 
          employee-employer relationship is created, schools would have 
          clarity in how they administer these funds and equity would be 
          preserved for any student who serves in these positions.  Thus, 
          this bill would allow any student who serves in student 
          government and is eligible for funds allocated to their position 








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          to access those funds regardless of their legal status."  

           Federal law  .  Several provisions of federal law are relevant to 
          the issues raised in this bill.

          1)Federal law prohibits the employment of undocumented persons. 

          2)Federal law precludes people who are unlawful residents from 
            being eligible for state benefits unless the state authority 
            provides for eligibility of illegal aliens for state and local 
            public benefits. 

          3)Federal law requires that a state benefit given for higher 
            education must be provided equally to citizens.  

          Thus, while federal law prohibits employment of undocumented 
          persons, it does allow states to provide public benefits to 
          persons without legal status, provided the state passes a law 
          "affirmatively providÝing] for such eligibility."  This bill 
          provides that specific authorization.  In fact, the California 
          Supreme Court recently upheld the constitutionality of AB 540 in 
          Martinez v. Regents, determining that it complies with (2) and 
          (3) above.

           Legal exposure  .  The institutions will make the determination as 
          to whether they classify student government stipends as 
          employment or benefits for residents, and they will face the 
          legal ramifications if the federal government disagrees with the 
          campus's determination, or if its determination is challenged 
          legally by a third party.  It is unclear if CSU would consider 
          this statute to be consistent with federal law and risk 
          potential legal exposure.  
          
           Why not UC  ?  UC students who are without legal status can serve 
          in student government.  The author may wish to request UC adopt 
          a resolution consistent with this policy.

           Related legislation  .  AB 63 (Donnelly), which failed passage in 
          this Committee on March 29, 2011, would have excluded 
          undocumented students from the provisions of AB 540.  AB 130 
          (Cedillo) and AB 131 (Cedillo), which were approved by this 
          Committee on March 15, 2011, would expand eligibility to AB 540 
          students for private scholarships and state financial aid 
          programs.  AB 130 is pending on the Assembly Floor, and AB 131 
          is in the Appropriations Committee.








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           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          American Civil Liberties Union
          California Community College League
          California Immigrant Policy Center
          California State Student Association
          Hispanic Association of Colleges and Universities

           Opposition 
           
          None on file.

           
          Analysis Prepared by  :    Sandra Fried / HIGHER ED. / (916) 
          319-3960