BILL ANALYSIS
SB 1460
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Date of Hearing: August 4, 2010
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
SB 1460 (Cedillo) - As Amended: June 2, 2010
Policy Committee: Higher
EducationVote:6-2
Urgency: No State Mandated Local Program:
Yes Reimbursable: Yes
SUMMARY
This bill expands eligibility for state-administered student
financial aid to nonresident (AB 540) students who are exempted
from paying nonresident tuition, and expands the AB 540
nonresident tuition exemption to include graduates of adult
education and technical schools, provided the individual spent
at least one year in a California high school. Specifically,
this bill:
1)Makes AB 540 students eligible to apply for and participate
in:
a) Any state-administered student financial aid program,
including institutional aid, to the full extent permitted
by federal law, beginning July 1, 2011.
b) The California Community Colleges (CCC) Board of
Governors (BOG) fee waiver program, beginning July 1, 2011,
and declares this provision to be consistent with specified
immigration law.
1)Requests the University of California (UC) Board of Regents
and requires the California State University (CSU) Board of
Trustees and the CCC BOG, beginning July 1, 2011, to establish
procedures and forms to enable AB 540 students to apply for
and participate in all student aid programs administered by
these segments, to the full extent permitted by federal law.
2)Makes AB 540 students eligible to receive a scholarship
derived from nonstate funds, beginning January 1, 2011.
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3)Expands, effective July 1, 2011, the AB 540 exemption to
include attendance and graduation from California technical
and adult schools, provided the student attended a California
high school for at least one year.
FISCAL EFFECT
All costs would begin in 2011-12.
1)Cal-Grants . The California Student Aid Commission (CSAC),
based on current estimated enrollment of AB 540 students at
the UC, CSU, and the CCC, estimates additional annual General
Fund costs for Cal Grants of $38 million.
2)Institutional Aid . For UC and CSU, making AB 540 students
eligible for institutional aid will not increase overall
spending, but may change the mix of recipients and/or the
amounts they received.
a) UC estimates, based on current numbers of AB 540
students, their demographic profile, and average aid
awards, that about 605 students would be eligible for $1.8
million in UC institutional aid.
b) CSU indicates enrollment of about 3,600 AB 540 students.
Assuming these students receive institutional aid in
proportion to all other CSU students (about 25%), about 900
students would be eligible for about $2.4 million in aid,
assuming an average award of $2,661.
3)CCC Fee Waivers . The revenue loss from CCC BOG fee waivers is
offset by increased Proposition 98 funding, and is thus a
direct state cost. According to the Chancellor's Office of the
CCC, there were 34,000 AB 540 students in the system in
2008-09. Assuming these students averaged six credits per
semester, total fee revenue would be $10.6 million. If 45% of
those students received fee waivers (the statewide average),
the revenue loss (and Proposition 98 cost) would be $4.8
million.
4)The addition state costs from expanding AB 540 eligibility to
include those graduating from technical and adult schools is
unknown.
COMMENTS
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1)Background . Pursuant to AB 540 (Firebaugh)/Chapter 814 of
2001, two groups of students who have attended and graduated
from California high schools receive non-resident tuition
status: those who do not have legal immigration status and
thus cannot establish state residency, and those who are US
citizens but are residents of another state. In 2005, Martinez
v. Regents of the University of California et al. was filed
against UC, CSU, and CCC, 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, thus, void. The decision was appealed,
and in December 2008, the California Supreme Court agreed to
review the case, but it is unclear when the court will
commence its review.
2)Purpose . Students who receive a waiver of non-resident tuition
at UC, CSU and the CCC still face significant costs, including
resident fees, books, supplies, food, rent, transportation,
and other miscellaneous items. The student aid commission
estimates the nine-month cost of education in 2010-11 for
California students living off-campus to be $16,497, in
addition to systemwide and campus fees. Moreover, federal law
prohibits undocumented students from receiving any aid from
the federal government, such as Pell Grants and federal
student loans. Supporters of SB 1460 argue that, in light of
recent reports highlighting the state's need for one million
more workers with college degrees, California cannot afford to
exclude people or prevent students from attending college,
thus providing state and institutional financial assistance to
all qualified students is essential.
3)Opposition . The Howard Jarvis Taxpayers Association and the
Concerned Women for America argue that the bill will encourage
illegal immigration and add an additional financial burden on
the state in the face of a multi-billion structural budget
deficit.
4)Prior Legislation . Numerous bills have sought to expand
financial aid to AB 540 students. Most recently, SB 1301
(Cedillo) of 2008, which only dealt with UC and CSU
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institutional aid, was vetoed, with the governor arguing
against additional financial burdens.
SB 1 (Cedillo) of 2007, which made AB 540 students eligible
for Cal Grant Entitlement Awards and CCC BOG fee waivers, was
also vetoed for financial reasons, as was SB 160 (Cedillo) of
2005.
In addition, SB 160 (Cedillo) of 2009, AB 2083 (Nunez) of
2008, and SB 160 (Cedillo) of 2007 were all held on Suspense
in Senate Appropriations.
Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081