BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 454
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          Date of Hearing:   April 21, 2009

                       ASSEMBLY COMMITTEE ON HIGHER EDUCATION
                              Anthony Portantino, Chair
                    AB 454 (Knight) - As Amended:  April 13, 2009
           
          SUBJECT  :   Public postsecondary education: exemption from  
          nonresident tuition.

           SUMMARY  :  Prohibits the California State University (CSU) and  
          the California Community Colleges (CCC) from receiving state  
          full-time equivalent student (FTES) funding for students who  
          qualify for in-state tuition under AB 540 (Firebaugh), Chapter  
          814, Statutes of 2001, and makes CSU and CCC compliance with AB  
          540 optional rather than mandatory.

           EXISTING LAW  :

          1)Exempts specified nonresidents of California from paying  
            nonresident tuition at CSU and CCC if they meet all of the  
            following:

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

             d)   If an alien without lawful immigration status, has 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)The University of California (UC), by resolution, complies  
            with existing law, established by AB 540.

           FISCAL EFFECT  :   Unknown

           COMMENTS  :   A previous version of this bill, which would have  
          repealed AB 540, was heard by this Committee on March 31, 2009.   








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          It failed passage and was granted reconsideration.  

           Background  :  Students who are eligible for resident tuition  
          under the provisions of AB 540 are typically persons without  
          lawful immigration status or United States (U.S.) citizens or  
          Permanent Residents who are residents of another state and would  
          be ineligible for state-administered or campus-based financial  
          aid programs without the provisions of AB 540.  According to the  
          Legislative Analyst's Office (February 2009), the percentage of  
          "AB 540 students" who lack legal residency is not known.  In  
          2008-09, non-resident tuition amounted to about $20,000 at UC,  
          $10,000 at CSU, and $4,800 at CCC per year.  

          AB 540 was enacted in part to address circumstances when a  
          student, who was brought to the United States (U.S.) as a child  
          by his or her parents, was deemed a nonresident for tuition  
          purposes when attending UC, CSU, or CCC.  Often, these students  
          were unaware that they were not legal U.S. residents, having  
          spent most of their life in this country.  AB 540 was drafted to  
          provide access to in-state tuition based on high school  
          attendance and other factors rather than legal status in order  
          to comport with federal law while recognizing that these  
          students' educational success will benefit the state and its  
          economy.  

           Purpose of this bill  :  According to the author, "An illegal  
          alien is not a resident of the state of California.  Therefore,  
          they should not be allowed the privilege of paying in-state  
          tuition.  If a citizen or legal immigrant student is attending a  
          college or university in the state of California, but they live  
          outside of the state, they must pay an out of state tuition fee.  
           It should stand to reason that an illegal immigrant, who does  
          not legally reside in the state of California, shall pay the  
          same out of state tuition rate."
           
           Disincentive for complying with state law  :  This bill allows CSU  
          and CCC to enroll AB 540 students but prohibits them from  
          receiving basic state support (in the form of FTES) for those  
          students, creating a funding incentive that is at odds with  
          state policy.  

           Other states  :  In addition to California, nine states provide  
          tuition benefits for undocumented students: Illinois, Texas, New  
          York, Washington, Kansas, Nebraska, New Mexico, Oklahoma, and  
          Utah.  Two states-Georgia and Colorado-explicitly restrict  








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          access to lower tuition rates for undocumented students. 

           Martinez v. UC Regents  :  In 2005, the Immigration Reform Law  
          Institute filed suit against UC, on behalf of UC students who  
          are residents of other states and pay non-resident tuition.  The  
          students contend that AB 540 violates federal law that requires  
          that "an alien who is not lawfully present in the United States  
          shall not be eligible on the basis of residence within a State ?  
          for any postsecondary education benefit unless a citizen or  
          national of the United States is eligible for such a benefit?"   
          The case was dismissed by a trial court in 2006; however, the  
          students appealed, and in September 2008, the state appellate  
          court ruled that AB 540 does in fact conflict with federal law  
          and "thwarts the will of Congress."  UC appealed to the  
          California Supreme Court, which in December 2008 agreed to hear  
          the appeal.  AB 540 remains in effect while the case works its  
          way through the legal process.

           Related legislation  :  AB 1207 (Logue), set for hearing in the  
          Assembly Higher Education Committee on April 21, 2009, would  
          deny undocumented students residency under AB 540.  Several  
          bills have been introduced in prior sessions to repeal AB 540  
          and were either held in the initial policy committee or were not  
          heard, including SB 268 (McClintock) of 2007, AB 589 (Emmerson)  
          of 2005, SB 349 (McClintock) of 2005, and AB 1503 (McClintock),  
          and AB 1503 (McClintock) of 2004.  

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          4 Individuals

           Opposition  (to version as introduced on February 24, 2009)
           
           American Civil Liberties Union
          American Federation of State, County and Municipal Employees
          Asian Pacific American Legal Center of Southern California
          California Catholic Conference
          California Immigrant Policy Center
          California Teachers Association
          Coalition for Humane Immigrant Rights of Los Angeles
          Los Angeles Community College District
          Public Advocates
          Rio Hondo Community College District








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          San Jose-Evergreen Community College District

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