BILL ANALYSIS Ó AB 131 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 131 (Cedillo) As Amended August 30, 2011 Majority vote ----------------------------------------------------------------- |ASSEMBLY: |50-27|(June 1, 2011) |SENATE: |23-11|(August 31, | | | | | | |2011) | ----------------------------------------------------------------- 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 AB 131 Page 2 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 AB 131 Page 3 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 FN: 0002437