BILL ANALYSIS
SENATE COMMITTEE ON EDUCATION
Gloria Romero, Chair
2009-2010 Regular Session
BILL NO: SB 1460
AUTHOR: Cedillo
INTRODUCED: February 19, 2010
FISCAL COMM: Yes HEARING DATE: April 14, 2010
URGENCY: No CONSULTANT:Kathleen Chavira
SUBJECT : California Dream Act
KEY POLICY ISSUES
Should AB 540 exemptions from non-resident tuition be
extended to graduates of adult education and technical
schools?
Should AB 540 students be eligible to apply for and receive
state administered and institutional financial aid
benefits? Should they be eligible to receive Board of
Governors fee waivers at the community colleges?
SUMMARY
This bill establishes the California Dream Act of 2010
which expands the existing exemption from non-resident
tuition established by AB 540 (Firebaugh, Chapter 814,
Statutes of 2001) to include students who graduate from
technical schools and adult schools and expands eligibility
for financial aid benefits to all students exempt from
paying non-resident tuition under AB 540 as it:
1) Requests the University of California (UC) and
requires the California
State University (CSU) and the Board of Governors of
the California Community Colleges (BOG CCCs) to
establish procedures and forms to enable AB 540
students to be eligible to apply for and participate
in all student financial aid administered by these
segments.
2) Expands eligibility for state administered student
financial aid programs to
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include AB 540 students.
3) Requires the California Community Colleges to waive
the student fees of
any of AB 540 students who would otherwise qualify for
such a waiver, as specified.
BACKGROUND
Current law provides for a variety of student financial aid
programs including the Cal Grant programs, the Community
College Board of Governors (BOG) fee waiver, a variety of
systemwide 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 limited to California residents.
Current law, (established by AB 540, Firebaugh, 2001)
exempts specified California nonresidents from paying
nonresident tuition at UC, CSU and the CCCs if they meet
all of the following:
1) Attended a California high school for three or more
years.
2) Graduated from a California high school or attained an
equivalent degree.
3) Registered or attended an accredited California higher education
institution not before fall of the 2001-02 academic
year.
4) Filed an affidavit, if an alien without lawful immigration status, stating
that the student has filed an application to legalize
their immigration status or will file such an
application as soon as they are eligible to so do.
(Education Code 68130)
In general, these students are not currently eligible for
federal, state and/or campus-based financial aid.
Current law also designates secondary schools as high
schools, technical schools, and adult schools. (EC 52)
ANALYSIS
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This bill establishes the California Dream Act of 2010.
More specifically it:
1) Requests the University of California (UC) and
requires the California State University (CSU) and the
Board of Governors of the California Community
Colleges (BOG CCCs) to establish procedures and forms
to enable these students apply for and participate in
all student aid programs administered by these
segments, to the full extent permitted by federal law.
2) Expands the existing exemption from non-resident
tuition to include students who attend and graduate
from technical schools and adult schools.
3) Makes AB 540 students eligible to apply for and
participate in any state administered student
financial aid program to the full extent permitted by
federal law.
4) Requires the California Community Colleges to waive
the student fees of any person exempt from paying
nonresident tuition and who would otherwise qualify
for a waiver and declares this provision to be
consistent with specified federal immigration law.
STAFF COMMENTS
1) Need for the bill . California high school graduates
who have been accepted to our premier public colleges
and universities may not be recognized as state
residents and may be ineligible for state financial
aid. These students confront a difficult challenge in
financing their college education because they are
ineligible for any federal grants or loans and are
unable to legally work. Additionally, according to the
author, an undocumented student could compromise their
future application for legalization if he/she submits
a Federal Application for Student Aid (FAFSA). The
California Dream Act would allow the state to fund its
neediest students while awaiting legalization by
requiring the creation of procedures to apply for
financial assistance without the use of the FAFSA.
2) Related court case . In 2005, Martinez v. Regents of
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the University of California et al. was filed against
the UC, CSU, and the Board of Governors of the
California Community Colleges, challenging the
legality of AB 540. In October 2006 a California
Superior Court ruled in favor of AB 540 stating its
provisions were in accordance with federal law. In
September 2008 a California Court of Appeal overturned
the Superior Court's ruling in Martinez v.Regents and
held that California state law authorizing in-state
tuition to "illegal aliens" is preempted by federal
immigration law and void. The decision was appealed
and in December 2008 the Supreme Court of California
agreed to review the case. It is unclear when the
Supreme Court will review the case. The AB 540
exemption remains in effect at the UC, CSU, and the
Community Colleges while the appeal is pending review.
3) How many students ? The most recent data from the UC,
CSU and CCC indicate that overall, AB 540 students
make up less than one percent of enrollment at all
three systems. More specifically:
At the UC, AB 540 students were less than
three-tenths of a percent of 220,000 students in
2007-08. More than 68 percent of the 1,941
students were U.S. citizens or "documented"
immigrants.
At the CSU, 3,633 AB 540 students were less
than one percent of the 440,000 students enrolled
in the current school year.
In the California Community Colleges, 34,057
students of the 2.89 million students enrolled in
the 2008-09 school year were granted AB 540
waivers, again, less than one percent.
The CSU and the CCC do not identify the immigration
status of AB 540 students, but believe that
undocumented students make up a larger proportion of
these students than they do at the UC.
1) What financial aid programs would these students be
eligible for ? The majority of student financial aid
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is provided through either federal or state
administered programs (e.g. Pell grants which is a
federal program or Cal grants which is a state
program). However, in addition to this aid,
individual campuses also directly administer some
financial aid programs including specialized grants,
loans and work study as well as aid derived from
student fees (typically 20%- 30% of student fee
revenue is set aside for institutional financial aid
at UC and CSU). This bill would make AB 540 students
eligible for Cal Grants, institutional aid at the UC
and CSU, Board of Governors fee waivers at the
community colleges, and any other state administered
programs
2) Adding adult schools . High school students who
combine attendance at a high school with attendance at
an adult school may jeopardize their eligibility for
the nonresident tuition exemption if their attendance
at the high school is for less than three years. This
bill addresses this situation by allowing the three
years of attendance to be at either a high school,
adult school, or any combination thereof. As drafted
this would also enable adult nonresidents to become
eligible by taking a single class for three years at
an adult school.
Staff recommends the bill be amended to insert on Page
4, line 11, "at least one year of which shall have
been at a high school." in order to narrow the
application of the bill's provisions to student
nonresidents who have attended some high school in
California.
3) Mandated costs. Legislative counsel has identified
mandated costs, likely as the result of the
requirement imposed upon the California Community
Colleges that fee waivers be granted to qualifying AB
540 students.
4) Technical amendment . Consistent with prior versions
of this bill, staff recommends that the bill be
amended on page 3, line 28 to add, "The Legislature
finds and declares that this section is a state law
within the meaning of Section 1621(d) of Title 8 of
the United State Code."
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5) Prior legislation . Since 2003, the Legislature has
considered several bills which were substantively
similar to this measure. This committee heard SB 160
(Cedillo, 2005), SB 1 (Cedillo, 2007), both of which
were almost identical this measure and were ultimately
vetoed by the Governor. The most recent similar bill
to go before the Governor was SB 1301 (Cedillo, 2008),
heard and passed (6-2) by the Senate Education
Committee on April 2, 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."
This committee also heard SB 160 (Cedillo, 2009), AB
2083 (Nunez, 2008), SB 160 (Cedillo, 2007), all of
which contained similar provisions to this bill and
all of which were ultimately held under submission in
the Senate Appropriations Committee.
6) Policy arguments .
Proponents argue that this bill would promote economic
development in our state by encouraging these students
to pursue a higher education and become part of the
educated workforce, thus improving the life of all
Californians. Additionally, many of these students
are outstanding, motivated individuals, who face
insurmountable economic and educational challenges as
they strive to reach their educational goals and their
accomplishments should not be disregarded or their
future jeopardized because of their legal status.
Opponents argue that the state has limited funds
available to provide financial aid, that this bill
would encourage illegal immigration, and that
increasing financial aid benefits will place greater
burdens on California taxpayers when we are facing a
$20 billion structural budget deficit.
SUPPORT
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American Civil Liberties Union
Board of Directors of the California Community College
League
California Catholic Conference, Inc.
California Communities United Institute
California Federation of Teachers
California State University
Chief Executive Officers of the California Community
College League
Hispanic Association of Colleges and Universities
Los Angeles Community College District
Los Angeles Unified School District
Rio Hondo Community College District
San Jose-Evergreen Community College District
OPPOSITION
California Concerned Women for America
Howard Jarvis Taxpayers Association