BILL ANALYSIS                                                                                                                                                                                                    �



                                                                      



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          |SENATE RULES COMMITTEE            |                   AB 130|
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                                 THIRD READING


          Bill No:  AB 130
          Author:   Cedillo (D), et al.
          Amended:  5/2/11 in Assembly
          Vote:     21

           
           SENATE EDUCATION COMMITTEE  :  7-3, 6/8/11
          AYES:  Lowenthal, Alquist, Hancock, Liu, Price, Simitian, 
            Vargas
          NOES:  Runner, Blakeslee, Huff
          NO VOTE RECORDED:  Vacancy

           SENATE APPROPRIATIONS COMMITTEE  :  5-2, 7/11/11
          AYES:  Kehoe, Alquist, Lieu, Price, Steinberg
          NOES:  Walters, Runner
          NO VOTE RECORDED:  Emmerson, Pavley

           ASSEMBLY FLOOR :  51-22, 5/5/11 - See last page for vote


           SUBJECT  :    Student financial aid:  eligibility:  
          California Dream Act of 2011

           SOURCE  :     Author


           DIGEST  :    This bill requires, beginning January 1, 2012, 
          that AB 540 (Firebaugh), Chapter 814, Statutes of 2001, 
          students attending the California State University, the 
          California Community Colleges, or the University of 
          California 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.
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           ANALYSIS  :    Existing law provides for a variety of student 
          financial aid programs including the Cal Grant programs, 
          the California Community College Board of Governors 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.

          Existing law, established by AB 540 (Firebaugh), Chapter 
          814, Statutes of 2001, exempts specified California 
          nonresidents from paying nonresident tuition at the 
          University of California (UC), California State University 
          (CSU) and the California Community Colleges (CCC) 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. 

          In general, these students are not currently eligible for 
          federal, state and/or campus-based financial aid.
           
           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.

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          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.

           Comments
           
           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 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 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. 

           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:

          1. 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 United States 
             citizens or "documented" immigrants.

          2. At the CSU, 3,633 AB 540 students were less than one 

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             percent of the 440,000 students enrolled in the current 
             school year.

          3. In the CCCs, 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.
           
          Similar Legislation

           AB 131 (Cedillo), effective July 1, 2012, expands the 
          existing exemption from nonresident tuition established by 
          AB 540 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.  (On Senate Appropriations Committee Suspense 
          File)

           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.  

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            Unfortunately, given the precarious fiscal 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), 2009-10 Session, would have expanded 
          eligibility for state postsecondary institutional financial 
          aid programs to include students who are exempted from 
          paying nonresident tuition due to specified provisions of 
          law.  (Held under submission in Senate Appropriations 
          Committee)

          AB 2083 (Nunez), 2008-08 Session, would have requested the 
          UC and would have required the CSU, and the Board of 
          Governors of the CCC to establish procedures and forms to 
          enable students who are exempt from paying nonresident 
          tuition, as specified, to be eligible to receive 
          institutional financial aid awards.  (Died in Senate Rules 
          Committee)

          SB 160 (Cedillo), 2007-08 Session, would have expanded 
          eligibility for state postsecondary financial aid and 
          community college fee waiver programs to include students 
          who are exempted from paying nonresident tuition due to 
          specified provisions in law.  (Held under submission in 
          Senate Appropriations Committee)

          SB 1 (Cedillo), 2007-08 Session, would have made California 
          high school graduates who meet the non-resident in-state 
          tuition requirements eligible for a fee waiver at community 
          colleges and able to participate in the Cal Grant program.  
          Passed the Senate with a vote of 24-15 on September 12, 
          2007.  The bill was subsequently vetoed by the Governor, 
          whose veto message read:  

            "At a time when segments of California public higher 
            education, the University of California and the 
            California State University, are raising fees on all 
            students attending college in order to maintain the 
            quality of education provided, it would not be prudent 
            to place additional strain on the General Fund to 

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            accord the new benefit of providing state subsidized 
            financial aid to students without lawful immigration 
            status.  Under existing law, undocumented students, who 
            meet the required criteria, already qualify for the 
            lower in-state tuition rate while attending California 
            public colleges and universities."

          SB 1301 (Cedillo), 2007-08 Session, would have required the 
          CSU and the CCC and would have requested the UC to provide 
          institutional financial aid to students who are exempt from 
          nonresident tuition, as specified.  Passed the Senate with 
          a vote of 23-12 on May 12, 2008.  The bill was subsequently 
          vetoed by the Governor, whose 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."

          SB 160 (Cedillo), 2005-06 Session,  would have required the 
          CSU and the CCC, and would have requested the UC, to enable 
          non-resident students, who are exempt from paying 
          non-resident tuition based on their three-year attendance 
          at and graduation from a California high school, to 
          participate in all student aid programs administered by 
          these institutions to the extent permitted by federal law, 
          and would have required CCC districts to waive the fees of 
          these students pursuant to regulations adopted by the CCC 
          Board of Governors.  Passed the Senate with a vote of 24-15 
          on August 31, 2006.  The bill was subsequently vetoed by 
          the Governor, whose veto message read, in pertinent part:

            "Current law allows undocumented students who have 
            attended a California high school for three years and 
            graduate from a California high school to attend a 
            state college and get a reduced state tuition rate but 
            not be eligible for public financial aid dollars.  
            California has over 100,000 students here legally who 
            apply annually for financial aid to attend college, and 
            our state has limited funds available for this 
            important purpose.


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            "While I do not believe that undocumented children 
            should be penalized for the acts of their parents, this 
            bill would penalize students here legally by reducing 
            the financial aid they rely on to allow them to go to 
            college and pursue their dreams."

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes   
          Local:  No

          According to the Senate Appropriations Committee:

                         Fiscal Impact (in thousands)

           Major Provisions        2011-12    2012-13     2013-14    Fund  

          Cost pressure: financial aid             Potentially 
          significant cost pressure      General/
                                                            Federal

           SUPPORT  :   (Verified  7/12/11)

          Advancement Project 
          AltaMed Health Services Corporation
          American Civil Liberties Union 
          American Federation of State, County and Municipal 
          Employees, AFL-CIO 
          American Federation of Teachers, Local 2121 
          Anti-Defamation League 
          Association of Independent California Colleges and 
          Universities 
          California Catholic Conference 
          California Commission on the Status of Women 
          California Communities United Institute 
          California Community Colleges Chancellor's Office 
          California Dream Network 
          California Federation of Teachers 
          California Grape & Tree Fruit League 
          California Immigrant Policy Center 
          California League of United Latin American Citizens 
          California Postsecondary Education Commission 
          California School Employees Association, AFL-CIO 
          California State PTA 
          California State University 
          California State Student Association

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          California Student Aid Commission 
          California Teachers Association
          Camino Nuevo Charter Academy 
          Chicano Federation of San Diego County 
          Chicano Latino Caucus of the California Democratic Party 
          Cities of Oakland, San Pablo, and Watsonville 
          Coalition for Humane Immigrant Rights of Los Angeles 
          Community Charter Middle School 
          Community College League of California 
          Equality California 
          Faculty Association of California Community Colleges 
          Fontana Unified School District 
          Friends Committee on Legislation of California 
          Gay-Straight Alliance Network  
          Hartnell College 
          Hispanic Association of Colleges & Universities 
          Hispanas Organized for Political Equality 
          Korean Resource Center 
          La Raza Law Students Association at UC Davis 
          Latino Equality Alliance 
          Lieutenant Governor Gavin Newsom 
          Los Angeles Chamber of Commerce 
          Los Angeles Community College District 
          Los Angeles County Democratic Party 
          Los Angeles Leadership Academy 
          Los Angeles Unified School District 
          MAAC Community Charter School 
          Mayor of Los Angeles, Antonio Villaraigosa 
          Mexican American Legal Defense and Educational Fund
          National Association of Social Workers, California Chapter 
          National Korean American Service & Education Consortium 
          National Council of La Raza 
          Nisei Farmers League 
          Para Los Ni�os 
          Peralta Community College District 
          Rio Hondo Community College District 
          San Jose-Evergreen Community College District 
          Santa Rosa Charter Academy 
          Service Employees International Union, California 
          Service Employees International Union, United Long Term 
          Care Workers 
          Services, Immigrant Rights & Education Network 
          Silicon Valley Leadership Group 
          State Superintendent of Public Instruction, Tom Torlakson 

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          Student Senate for California Community Colleges 
          UAW Local 2865 
          University of California  
          University of California Student Association 
          Western Association for College Admissions Counselors 
          Yolo County Supervisor, Jim Provenza

           OPPOSITION  :    (Verified  7/12/11)

          Californians for Population Stabilization
          Concerned Women for America of California

           ARGUMENTS IN SUPPORT  :    The author's office 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's office, 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 scholarships derived from non-state 
          funds at no cost to the state.


           ASSEMBLY FLOOR  :  51-22, 5/5/11
          AYES:  Alejo, Allen, Ammiano, Atkins, Beall, Block, 
            Blumenfield, Bonilla, Bradford, Brownley, Buchanan, 
            Butler, Charles Calderon, Campos, Carter, Cedillo, 
            Chesbro, Davis, Dickinson, Eng, Feuer, Fong, Fuentes, 
            Galgiani, Gatto, Gordon, Hall, Hayashi, Roger Hern�ndez, 
            Hill, Huber, Hueso, Huffman, Lara, Bonnie Lowenthal, Ma, 
            Mendoza, Mitchell, Monning, Pan, Perea, V. Manuel P�rez, 
            Portantino, Skinner, Solorio, Swanson, Torres, 
            Wieckowski, Williams, Yamada, John A. P�rez
          NOES:  Achadjian, Bill Berryhill, Conway, Cook, Donnelly, 
            Fletcher, Grove, Hagman, Halderman, Harkey, Jeffries, 
            Knight, Logue, Mansoor, Miller, Morrell, Norby, Olsen, 
            Silva, Smyth, Valadao, Wagner
          NO VOTE RECORDED:  Furutani, Garrick, Gorell, Jones, 
            Nestande, Nielsen, Vacancy


          CPM:mw  7/13/11   Senate Floor Analyses 

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                         SUPPORT/OPPOSITION:  SEE ABOVE

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