BILL ANALYSIS
AB 2159
Page 1
Date of Hearing: April 6, 2010
ASSEMBLY COMMITTEE ON HIGHER EDUCATION
Marty Block, Chair
AB 2159 (Anderson) - As Amended: March 22, 2010
SUBJECT : Postsecondary education.
SUMMARY : Repeals existing law that provides a nonresident
tuition exemption for specified students, also known as "AB 540
students," and provides resident status, for the purpose of
determining the amount of public higher education tuition and
fees, to members of the armed services who are within one year
of leaving active duty. Specifically, this bill :
1)Repeals legislative findings and existing law that exempts
specified nonresidents of California from paying nonresident
tuition at the California State University (CSU), and the
California Community Colleges (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 or attended an accredited California higher
education institution beginning or after 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)Entitles former members of the armed forces to resident
classification for the purposes of determining the amount of
public higher education tuition and fees, if the student meets
all of the following requirements:
a) Is eligible for benefits pursuant to federal Post-9/11
Veterans Educational Assistance Act of 2008 (Public Law
110-2520);
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b) Is honorably discharged from service; and,
c) Provides documentation of a domicile in the state, as
specified.
EXISTING LAW :
1)Exempts specified students, as described above, from
nonresident tuition at CSU and CCC [AB 540 (Firebaugh),
Chapter 814, Statutes of 2001]. The University of California
(UC) adopted an identical policy in 2002.
2)Provides fee waivers to surviving spouses, children,
step-children, and dependents of active duty law enforcement,
fire suppression, U.S. Military, and California National Guard
(CNG) members who are killed or disabled as a result of active
duty.
3)Provides for the Cal Grant program under which grants
sufficient to cover mandatory systemwide fees at UC, CSU, and
CCC are provided to undergraduate students who demonstrate
financial need, as specified.
4)Provides for the CNG Education Assistance Program, which
provides fee waivers to CNG members, contingent upon funding
in the annual budget act [ABx4 12 (Evans), Chapter 96,
Statutes of 2009].
FISCAL EFFECT : Unknown
COMMENTS : AB 540 repeal : Students who are eligible for
resident tuition under the provisions of AB 540 are typically
aliens without lawful immigration status or 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 (LAO), of students who claimed
residency under the provisions of AB 540, approximately 25% at
UC were undocumented student and up to 90% at CCC were
undocumented. CSU was unable to provide data or estimates
related to this issue.
In addition to California, nine states provide tuition benefits
for undocumented students: Illinois, Texas, New York,
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Washington, Kansas, Nebraska, New Mexico, Oklahoma, and Utah.
Two states-Georgia and Colorado-explicitly restrict access to
lower tuition rates for undocumented students.
Benefits to nonresident veterans provided at the expense of AB
540 students : The LAO estimates that tuition waived under AB
540 totaled approximately $117 million in 2005-06 at UC, CSU,
and CCC. The author intends these savings to be used to offset
the costs of implementing the nonresident fee waiver for
veterans. The Committee may wish to consider if it is
appropriate to provide an educational benefit to one group of
students at the expense of another, especially when AB 540
students do not currently have access to publicly funded
financial aid?
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. While all the briefs have been filed, oral
arguments have not yet been scheduled. AB 540 remains in effect
while the case works its way through the legal process.
Benefits of California-resident classification for tuition and
fee purposes : UC, CSU, and CCC are publicly subsidized with the
proceeds of state taxes and would receive more than $10 billion
in General Funds under the Governor's January Budget proposal.
The lower resident fees for students who reside in California
reflect the contribution they and their parents have already
made by paying taxes in California. The fees charged to
non-California residents are intended to cover the cost of the
subsidy that is generated by California taxpayers. Tuition and
fees for a full-time undergraduate student in 2009-10, not
including registration and education fees, are:
Resident Out-of-State
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UC $7,473 $30,110
CSU $4,026 $11,160
CCC $26 per unit $190 per semester unit
Post-9/11 GI Bill benefits : On June 30, 2008, the federal
government passed the Post-9/11 GI Bill, a new benefit providing
educational assistance to individuals who served on active duty
on or after September 11, 2001. Benefits will be payable for
educational training pursued on or after August 1, 2009, and
will be available for up to 36 months of assistance. The
percentage of entitled assistance is determined by the length of
active duty service. Benefits include:
1)Amount of in-state tuition and fees charged;
2)Monthly housing allowance;
3)Yearly books and supplies stipend of up to $1,000 per year;
4)One time payment of $500 may be payable to certain individuals
relocated from highly rural areas; and,
5)Authority to transfer this entitlement to dependents.
What benefit does this bill provide ? Veterans from other states
would be charged nonresident fees during their first year while
they establish residency. The Post-9/11 GI Bill benefits fund a
student's in-state tuition and fees. Thus, this bill would
provide a subsidy equaling the difference between the resident
and non-resident fees at the student's college or university
during his or her first year. After the first year, the
Post-9/11 GI Bill would fully cover the student's fees.
Should this benefit be need-based ? Most California's financial
aid programs require demonstration of financial need. Is it
appropriate to provide a significant state subsidy to all
persons eligible for this benefit without proof of need,
especially when the state is cutting existing programs and the
Governor is proposing elimination of the Competitive Cal Grant
Program in his 2010-11 budget?
Revenue loss to the segments : This bill does not provide
funding to backfill for the loss of non-resident fee revenue
that would likely result from this bill. If the intent of this
bill is to provide a benefit to non-Californian members of the
military, it may be more appropriate to provide this benefit
directly, such as through a Cal Grant dedicated to these
students for the one year it takes to establish residency. This
would allow the Legislature to more easily track the costs of
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the program, as well as review its merits relative to other
student financial aid programs and other state-supported
programs, and would spare the segments revenue losses in
addition to those they have sustained in recent state budgets.
Reporting requirement : This bill creates a new program, yet
there are no provisions for a review or evaluation. The
Committee may wish to consider adding a reporting requirement.
Previous legislation : AB 454 (Knight), which failed passage in
this Committee on March 31, 2009, would have repealed AB 540.
AB 1207 (Logue) of 2009, which was never set for hearing by this
Committee, would have prohibited a person without lawful
immigration status from qualifying for resident tuition under AB
540. AB 38 (Salas) of 2009, which passed this Committee on
March 17, 2009, and was held in the Assembly Appropriations
Committee, would have provided a waiver of nonresident tuition
for veterans. AB 1758 (DeVore) of 2008, which was held in the
Assembly Appropriations Committee, would have repealed AB 540
and used the savings to fund a National Guard Education
Assistance Program.
REGISTERED SUPPORT / OPPOSITION :
Support
Californians for Population Stabilization
Opposition
American Civil Liberties Union
Asian Americans for Civil Rights and Equality
Asian Pacific American Legal Center of Southern California
California Immigrant Policy Center
California Postsecondary Education Commission
California State Student Association
Faculty Association of California Community Colleges
Hispanic Association of Colleges and Universities
Services, Immigrants Rights & Education Network
Student Advocates for Higher Education
Analysis Prepared by : Sandra Fried / HIGHER ED. / (916)
319-3960