BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 131
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 131 (Cedillo)
          As Amended  August 30, 2011
          Majority vote
           
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          |ASSEMBLY:  |50-27|(June 1, 2011)  |SENATE: |23-11|(August 31,    |
          |           |     |                |        |     |2011)          |
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           Original Committee Reference:    HIGHER ED.  

           SUMMARY  :  Establishes the California Dream Act, expanding 
          eligibility for financial aid, beginning January 1, 2013, to 
          students who qualify the existing exemption from non-resident 
          tuition established by AB 540 (Firebaugh, Chapter 814, Statutes 
          of 2001). Specifically,  this bill  :

          1) Requests the University of California (UC) and requires that 
             the California
             State University (CSU) and the Board of Governors of the 
             California Community Colleges (CCC), and the California 
             Student Aid Commission, 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 
             include AB 540 students.  

          3) Requires the CCCs to waive the student fees of any AB 540 
             students who would otherwise qualify for such a waiver, as 
             specified.

           The Senate amendments  delay implementation from July 1, 2012, to 
          January 1, 2013, and delete language expanding the AB 540 
          exemption to students who graduate from technical schools and 
          adult schools. 
           
          AS PASSED BY THE ASSEMBLY  , this bill was substantially similar 
          to the version approved by the Assembly.

           FISCAL EFFECT  :  According to the Senate Appropriations 
          Committee, ongoing General Fund costs of $23-$40 million 








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          annually.  CCC costs will count toward meeting the Proposition 
          98 minimum guarantee.

           COMMENTS  :  Current law (Education Code Section 68130, 
          established by AB 540) 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. 

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

          The majority of student financial aid 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. 

          This bill specifically provides that the number of awards 
          received by California residents through campus-administered 
          programs not be diminished as a result of expanding access to 
          these programs to include AB 540 students.  While the number of 
          institutional aid awards cannot be diminished, the bill could 
          result in a change in the mix of recipients and a change in the 
          amounts received by students.  This bill also makes provision 








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          for AB 540 students to be eligible for Competitive Cal Grant A 
          and B awards once all California students have received an 
          award.  Given that demand for the Competitive Cal Grant far 
          exceeds the amount of funding typically provided it is unlikely 
          that AB 540 students would receive funds from this program.


           Analysis prepared by  :    Sandra Fried / HIGHER ED. / (916) 
          319-3960

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