BILL ANALYSIS                                                                                                                                                                                                    �






                         SENATE COMMITTEE ON EDUCATION
                             Alan Lowenthal, Chair
                           2011-2012 Regular Session
                                        

          BILL NO:       AB 130
          AUTHOR:        Cedillo
          AMENDED:       May 2, 2011
          FISCAL COMM:   Yes            HEARING DATE:  June 8, 2011
          URGENCY:       No             CONSULTANT:Kathleen Chavira

          SUBJECT  :  California Dream Act of 2011
          
           SUMMARY  

          This bill requires, beginning January 1, 2012, that AB 540 
          students attending the California State University (CSU), 
          the California Community Colleges (CCC), or the University 
          of California (UC) be eligible to receive a scholarship 
          derived from non-state funds (received for the purpose of 
          scholarships) at the segment where the student is enrolled.

           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, Chapter 814, Statutes 
          of 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.




                                                                AB 130
                                                                Page 2




          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.

           
          ANALYSIS
           
           This bill:
           
              1)   Requires, beginning January 1, 2012, that any 
               student admitted under the provisions of AB 540 and 
               attending the CSU, CCC, or the UC, be eligible to 
               receive a scholarship derived from non-state funds 
               (received for the purpose of scholarships) at the 
               segment where he/she is enrolled.

             2)   Declares that the provisions of the bill are in 
               compliance with specified federal immigration law.

             3)   Extends immunity granted to California's public 
               postsecondary institutions from any monetary damages, 
               tuition refunds/waivers, or other retroactive relief 
               that may result from the implementation of AB 540 to 
               include any provisions adopted as a result of this 
               bill, should a state court declare them unlawful. 

             4)   Makes related findings and declarations.

           STAFF COMMENTS  

           1)   Need for the bill  .  The author is concerned that 
               California high school graduates who have been 
               accepted to our premier public colleges and 
               universities may be ineligible for state financial 
               aid. According to the author, 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. The 
               California Dream Act established by this bill would 
               allow these students to apply for and receive 




                                                                AB 130
                                                                Page 3



               scholarships derived from non-state funds at no cost 
               to the state.

           2)   Related court case  .  In 2005, Martinez v. Regents of 
               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. In November 2010, the 
               California Supreme Court reversed the judgment of the 
               Court of Appeal, finding that the provisions of AB 540 
               did not violate the federal immigration law and 
               concluding that the plaintiffs' remaining challenges 
               to the provisions of AB 540 lacked merit. 

           3)   Similar legislation  .  AB 131 (Cedillo), effective July 
               1, 2012, expands the existing exemption from 
               nonresident tuition established by AB 540 (Firebaugh, 
               Chapter 814, Statutes of 2001) to include students who 
               attend and graduate from California technical and 
               adult schools and expands eligibility for 
               state-administered financial aid to all AB 540 
               students. 
               AB 131 is currently awaiting committee assignment in 
          the Senate Rules 
               Committee. 

               Staff notes that both AB 130 and AB 131 propose 
               amendments to the same section of existing law. Should 
               this Committee advance two bills on the same policy 
               question? If so, should the bills be double joined to 
               ensure that no unintended chaptering out of provisions 
               occurs?
           
          4)   How many students  ?  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:




                                                                AB 130
                                                                Page 4




                        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)   Prior legislation  .  Since 2003, the Legislature has 
               considered several bills which have attempted to 
               ensure that AB 540 students were able to receive 
               financial assistance to attend college. The most 
               recent efforts included 
               SB 1460 (Cedillo, 2010) and AB 1432 (Fuentes, 2010) 
               which were substantively similar to each other in that 
               they proposed the expansion of the existing exemption 
               from nonresident tuition established by AB 540 to 
               include students who graduated from technical schools 
               and adult schools and proposed expansion of 
               eligibility for financial aid benefits to all students 
               exempt from paying nonresident tuition under AB 540.  
               Both bills were ultimately vetoed by Governor 
               Schwarzenegger whose veto message read, in pertinent 
               part:

                    I have always wholeheartedly supported the policy 
                    of making higher education opportunities as 
                    affordable as possible for all California's 
                    students.  Our state's university and community 
                    college systems are amongst the finest in the 
                    country and should be made accessible to those 
                    seeking a better life through higher education.  
                    Unfortunately, given the precarious fiscal 




                                                                AB 130
                                                                Page 5



                    situation that the state faces, it would not be 
                    practical to adopt a new policy that could limit 
                    the financial aid available to students that are 
                    in California legally, in order to provide that 
                    benefit to those students who are not.
               
               Other similar Dream Act measures include:

                           SB 160 (Cedillo, 2009) 

                           AB 2083 (Nunez, 2008) 

                           SB 160 (Cedillo, 2007) 

                           SB 1 (Cedillo, 2007) 

                           SB 1301 (Cedillo, 2008)

                           SB 160 (Cedillo, 2005) 

           SUPPORT  

          AltaMed Health Services Corporation
          American Civil Liberties Union
          American Federation of State, County and Municipal 
          Employees (AFSCME)
          California Community College Chancellor's Office
          California Federation of Teachers
          California School Employees Association, AFL-CIO
          California State Student Association
          City of San Pablo City Council
          Community College League of California
          Korean Resource Center of Los Angeles
          Los Angeles Community College District
          Mayor Antonio R. Villaraigosa
          National Association of Social Workers - California Chapter
          National Korean American Service & Education Consortium
          Peralta Community College District
          Rio Hondo Community College District
          San Jose-Evergreen Community College District
          University of California
          University of California Student Association
          Western Association for College Admissions Counselors

           OPPOSITION





                                                                AB 130
                                                                Page 6



           Californians for Population Stabilization