BILL ANALYSIS                                                                                                                                                                                                    

                                                                     AB 206

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          Date of Hearing:  April 7, 2015 


                                 Jose Medina, Chair

          AB 206  
          (Mark Stone) - As Introduced January 29, 2015

          SUBJECT:  Student financial aid:  California DREAM Work-Study  

          SUMMARY:  Establishes the California DREAM Work-Study Program  
          (Program) to be administered by the California Student Aid  
          Commission (CSAC).  Specifically, this bill:  

          1)Establishes, commencing with the 2016-17 fiscal year, the  
            Program under CSAC to provide financial aid for students  
            meeting eligibility requirements.

          2)Establishes student eligibility requirements, as determined by  
            the institution of attendance, as follows:

             a)   Enrolled, or accepted for enrollment at a campus of the  
               California State University (CSU) or University of  
               California (UC);

             b)   Exempt from nonresident tuition pursuant to Section  


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             c)   Applied for financial aid under Section 69508.5;

             d)   Qualified under the income and need standards applied to  
               work-study programs by the institution in which the student  
               is enrolled or accepted for enrollment; and,

             e)   Meets additional eligibility requirements deemed  
               appropriate by the institution in which the student is  

          3)Requires CSAC to provide funding, as outlined below, upon  
            verification that a student is eligible for financial aid  
            under this article:

             a)   CSAC shall match 100% of the cost of the work-study  
               grant of a student whose Program work is accomplished on a  
               campus of the CSU or UC or at a campus or other facility of  
               a school district or community college (CCC) district.

             b)   CSAC shall match 50% of the cost of the work-study grant  
               of a student whose Program work is accomplished at a  
               location other than those specified above.

          EXISTING LAW:  

          1)Qualifies for lower resident fee/tuition payments at the CCC,  
            CSU, and UC, a student who attended high school in California  
            for three (or equivalency) or more years, graduated (or  
            equivalency) from a California high school, enrolled at an  
            accredited institution of higher education in California not  
            earlier than the fall semester or quarter of 2001-02, and  


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            files an affidavit with the institution of higher education  
            stating that the student has filed an application to legalize  
            his or her immigration status or will file an application as  
            soon as he or she is eligible.  These students are often  
            referred to as "AB 540 students".  (Education Code Section  

          2)Establishes the California DREAM Act to provide state,  
            including the Cal Grant Program and the CCC Board of Governors  
            Fee Waiver, and institutional financial aid to students who  
            qualify the aforementioned exemption from non-resident  
            tuition, students must apply by March 2 prior to the academic  
            year; Dream Act recipients receive Cal Grant Entitlement  
            awards, but are not eligible for Competitive Cal Grant awards  
            unless funding remains available after eligible California  
            students have received awards.  According to CSAC, in 2014-15,  
            38,473 students completed a Dream Act Application, 8,195  
            awards were offered, and 4,206 awards paid.  (EDC Section  

          3)Establishes the California DREAM Loan Program intended to  
            provide low-interest loans to Dream Act students who are  
            accessing the Cal Grant program and attending UC and CSU.   
            These students are not eligible for federal student loans,  
            making it difficult for some to cover the total costs of  
            college. The law requires the state and UC and CSU to split  
            the costs of launching the program. The state would need to  
            provide about $4.7 million General Fund to begin the program.   
            In 2014, the Governor signed SB 1210 (Lara), Chapter 754, but  
            does not provide funding in the 2015-16 budget for the  
            program. (EDC Section 70030-70039)

          4)Since 1986, a California State Work Study Program has existed  
            in statute to provide financially needy students with the  
            opportunity to earn money to help defray educational costs  
            while gaining experience in educationally beneficial or  
            career-related employment.  The program was administered by  
            CSAC and was funded as a pilot program beginning in 1987.  In  


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            1998, the program was expanded to include the Teaching Intern  
            Program, to make work-study funding available to offer  
            tutoring in various outreach activities for pupils. The  
            program has not been funded in recent years.  (EDC Section  
            69950 - 69969.5)

          5)The California Community College (CCC) CalWORKs Program  
            provides funds to CCCs to assist welfare recipient students  
            and those in transition from welfare to achieve long-term  
            economic self-sufficiency.  The services provided through the  
            program include child care, academic and personal counseling,  
            work study, and job placement.  Funds allocated for work study  
            are required to be used for payments to employers  
            participating in campus-based work study or are providing work  
            experiences directly related to the educational programs.   
            Payments may not exceed 75% of the wage for the position;  
            employers must pay at least 25%.  In 2013-14, CCC CalWORKs  
            provided 5,303 work-study positions; 4,525 positions on-campus  
            and 778 off-campuses.  (EDC Section 79200 - 79209)

          FEDERAL LAW:

          1)On June 15, 2012, the Secretary of Homeland Security, under  
            the direction of President Obama, announced the Deferred  
            Action for Childhood Arrivals (DACA) policy, providing certain  
            people who came to the United States as children and meet  
            several guidelines authority to request consideration of  
            deferred action for a period of two years, subject to renewal.  
            They are also eligible for work authorization. Deferred action  
            is a use of prosecutorial discretion to defer removal action  
            against an individual for a certain period of time. Deferred  
            action does not provide lawful status. 

            Individuals may request consideration of DACA if they meet the  
            following requirements:

             a)   Were under the age of 31 as of June 15, 2012;


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             b)   Came to the United States before their 16th birthday;

             c)   Have continuously resided in the United States since  
               June 15, 2007, up to the present time;

             d)   Were physically present in the United States on June 15,  
               2012, and at the time of making the request for  
               consideration of deferred action;

             e)   Had no lawful status on June 15, 2012, meaning never had  
               a lawful immigration status on or before June 15, 2012, or  
               any lawful immigration status or parole obtained prior to  
               June 15, 2012, that had expired as of June 15, 2012;

             f)   Currently in school, have graduated or obtained a  
               certificate of completion from high school, have obtained a  
               General Educational Development (GED) certificate, or are  
               an honorably discharged veteran of the Coast Guard or Armed  
               Forces of the United States; and,

             g)   Have not been convicted of a felony, a significant  
               misdemeanor, three or more other misdemeanors, and do not  
               otherwise pose a threat to national security or public  

          2)The Federal Work Study (FWS) Program provides funds for  
            part-time employment to help needy students finance higher  
            education.  Students can receive FWS funds at 3,400  
            participating postsecondary institutions at hourly wages of at  
            least the federal minimum wage.  Participating institutions  
            must apply annually to the US Department of Education (USDE)  
            to participate.  Using a statutory formula, USDE allocates  
            funds based on prior year funding levels and the aggregate  
            need of prior year eligible students.  Generally, the school  
            or employer pays up to 50% share of the student's wages;  
            however, in some cases, for example, FWS jobs as reading or  
            math tutors, the federal share of the wages may be as high as  
            100%.  Institutions must use at least 7% of their FWS  
            allocation to support students working in community service  


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            jobs.  Students apply for FWS assistance through the Free  
            Application for Federal Student Aid (FAFSA).  (Higher  
            Education Act of 1965, Title IV, Part C; 42 U. S. C.  

          3)Federal immigration law prohibits an undocumented immigrant  
            from being eligible for postsecondary education benefits on  
            the basis of residence within a State if those benefits are  
            not available to citizens or nationals of the United States  
            who are nonresidents of that State. (Illegal Immigration  
            Reform and Immigrant Responsibility Act of 1996, Title 8,  
            Chapter 14, Section 1623(a)).    

          FISCAL EFFECT:  Unknown.

          COMMENTS:  Purpose of this bill.  According to the author,  
          federal law currently excludes undocumented students from any  
          federal financial aid, including the FSW Program.  Some campuses  
          of the UC have been able to develop institutional work-study  
          grants for AB 540 students beginning in the fall of 2014, but  
          they lack an ongoing funding source moving forward.  This  
          measure aims to ensure that UC and CSU students have access to  
          grants for work-study.

          Review of prior California State Work-Study Program.  As  
          previously noted, the California State Work-Study Program was  
          funded beginning in 1987.  According to an independent review of  
          the pilot program conducted in 1990, of the 561 students  
          participating in the program at 15 institutions in 1987-88, the  
          vast majority obtained jobs related to their educational or  
          career goals.  Over 80% of the students surveyed for the review  
          said either they would not have been able to attend high school  
          without the job, or that having a job made it more likely that  
          they would stay in school.  The review found that students came  
          from low-income families with an average income of $18,200 for  
          dependent students and $7,795 for independent students.  The  
          review found that the program would be a valuable addition to  


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          the State's financial aid programs and help students work rather  
          than take out student loans.  This program has not been funded  
          in recent years.

          FWS programs at UC and CSU.  As previously noted, the FWS  
          provides funds for part-time employment to help needy students  
          finance higher education.  Currently, all campuses of the CSU  
          and UC participate in FWS.  According to information provided by  
          CSU and UC, existing funding provided under FWS does not provide  
          sufficient support to meet all students need.

          Existing UC programs.  In 2014-15, seven UC campuses were able  
          to offer institutionally funded work-study awards to AB 540  
          students with DACA status, and awards are typically about $2,000  
          for the year.  Three of the seven campuses offered these  
          programs for the first time in the current year and at least two  
          of the campuses did so with one-time moneys, so it is unclear if  
          these programs will be able to continue in future years.  For  
          2015-16, it is possible that only two to three campuses will be  
          able to continue these programs.  As the population of AB 540  
          students with DACA status grows, there is concern that  
          institutional funding for these work-study programs will be  
          inadequate.  There are no comparable work-study programs for AB  
          540 students at any CSU campuses.  

          Committee considerations.  The committee may wish to consider  
          the following amendments:


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          1)Consistent with the Author's intent, clarify that students  
            must have applied for financial aid using the Dream Act  

            On Page 2, strike lines 19-20 and insert:

            (3) Make a timely application for financial aid using the  
            application established by the Student Aid Commission pursuant  
            to subdivision (b) of Section 69508.5, known as the Dream Act  

          2)The bill provides institutions with authority to establish  
            standards and eligibility requirements for participating  
            students and qualifying employment positions.  The Committee  
            and Author may wish to establish minimum requirements  
            requiring: (a) students are ineligible for other work-study  
            programs; (b) students be undergraduate students and making  
            satisfactory academic progress; and, (c) students have federal  
            authorization to work.

          3)According to information provided by CSAC, colleges and  
            universities are responsible for determining a student's AB  


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            540 eligibility and responsible for determining a student's  
            eligibility under the Dream Act.  Committee staff understands  
            that it is the author's intent that CSU and UC would have  
            responsibility for determining student eligibility and  
            identifying placement for work study under this bill.  As  
            there is an unclear role for CSAC, to reduce administrative  
            burden and cost, the author may wish to consider removing CSAC  
            and allowing CSU and UC to administer the program established  
            by this bill directly. 



          American Civil Liberties Union of California

          California Dream Network

          California Federation of Teachers

          California Immigrant Policy Center

          California State Student Association

          Coalition for Humane Immigrant Rights of Los Angeles

          National Association of Social Workers, California Chapter


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          Scholars Promoting Education Awareness and Knowledge

          31 Individuals


          None on File

          Analysis Prepared by:Laura Metune / HIGHER ED. / (916) 319-3960