BILL ANALYSIS                                                                                                                                                                                                    



                                                                           
           AB 1413
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 1413 (Coto)
          As Amended  August 31, 2010
          Majority vote
          
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          |ASSEMBLY:  |     |(May 14, 2009)  |SENATE: |23-13|(August 31,    |
          |           |     |                |        |     |2010)          |
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                    (vote not relevant)

          Original Committee Reference:    INS.  
           
           SUMMARY  :  Effective July 1, 2011, expands eligibility for state  
          postsecondary financial aid to include students who are exempted  
          from paying nonresident tuition due to specified provisions in  
          law [created by AB 540 (Firebaugh), Chapter 814, Statutes of  
          2001].  Specifically,  this bill  :

          1)Allows eligible California high school graduates, as defined,  
            to participate in the Cal Grant Entitlement award programs.

          2)Prohibits AB 540 students from receiving Competitive Cal Grant  
            awards unless funding remains available after all non-AB 540  
            California students have received the Competitive Cal Grant  
            awards for which they are eligible.

          3)Becomes operative July 1, 2011, and only if SB 1460 (Cedillo)  
            of the 2009-10 Regular Session is enacted and becomes  
            operative on or before January 1, 2011.

          4)Finds and declares that this bill is a state law within the  
            meaning of subsection (d) of Section 1621 of Title 8 of the  
            United States Code.

           The Senate amendments  delete this bill's provisions and add the  
          current provisions, which were contained in SB 1460 (Cedillo)  
          until they were removed in the Assembly Appropriations Committee  
          on August 16, 2010.

           EXISTING LAW  :

          1)Provides for a variety of student financial aid programs  
            including the Cal Grant programs, the California Community  








                                                                           
           AB 1413
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            Colleges (CCC) fee waiver, a variety of system wide 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 needs-based  
            and limited to California residents.

          2)Exempts specified California nonresidents from paying  
            nonresident tuition at the University of California (UC), the  
            California State University (CSU), and CCC, also known as the  
            AB 540 nonresident tuition waiver, 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 or attended an accredited California higher  
               education institution beginning of 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.

           AS PASSED BY THE ASSEMBLY  , this bill provided that if an insured  
          purchased a fire insurance policy that provides extended or  
          guaranteed replacement cost coverage, then the full scope of  
          that coverage is available whether the insured rebuilds at the  
          original or a new location, among other provisions.

           FISCAL EFFECT  :  General Fund costs of about $19 million in  
          2011-12, increasing annually thereafter with increased caseload  
          and grant levels.

           COMMENTS  :  Federal law prohibits undocumented students from  
          receiving any aid from the federal government, such as Pell  
          Grants and federal student loans, and prevents states from  
          offering public benefits to undocumented students unless the  
          state passes a statute expressly qualifying undocumented  
          students for such benefits.  








                                                                           
           AB 1413
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          AB 540 students are typically aliens without lawful immigration  
          status or United States 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.  

          A similar measure, SB 1460 (Cedillo), which passed the  
          Legislature on August 31, 2010, would make AB 540 students  
          eligible for institutional aid administered by UC and CSU and  
          for CCC fee waivers.  Prior to the August 16, 2010, amendments,  
          SB 1460 contained the provisions that are currently in this  
          bill.

          Students who receive a waiver of non-resident tuition at UC,  
          CSU, and CCC still face significant costs, including resident  
          fees, books, supplies, food, rent, transportation, and other  
          miscellaneous items.  CSAC estimates the nine-month cost of  
          education in 2010-11 for California students living off-campus  
          to be $16,497, in addition to system wide and campus fees.  

          Since 2003, the Legislature has considered several bills that  
          were substantively similar to this measure.  The most recent  
          similar bill to go before the Governor was SB 1301 (Cedillo) of  
          2008; the Governor's 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.  For this reason, I am unable to sign this bill."


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


          FN: 0006916