BILL ANALYSIS Ó AB 844 Page 1 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 AB 844 Page 2 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 AB 844 Page 3 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. AB 844 Page 4 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