BILL ANALYSIS                                                                                                                                                                                                    

                                                                    AB 2136

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          Date of Hearing:  May 4, 2016


                               Lorena Gonzalez, Chair

          2136 (Mayes) - As Amended April 11, 2016

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          Urgency:  No  State Mandated Local Program:  YesReimbursable:   


          This bill requires the California State University (CSU) and the  
          California Community Colleges (CCC), and requests the University  
          of California (UC) to provide exemptions from paying nonresident  


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          tuition to a nonimmigrant alien student who is the dependent of  
          someone with an E-2 nonimmigrant classification, as long as the  
          student remains continuously enrolled and meets the same  
          California high school attendance and graduation requirements as  
          an undocumented student granted a nonresident tuition exemption  
          pursuant to AB 540.

          FISCAL EFFECT:

          To the extent additional students at UC, CSU, and the CCC  
          qualify for an exemption from nonresident tuition charges  
          pursuant to this bill, the segments will experience revenue  

          UC indicates that about 100 students systemwide have an E-2  
          visa. If only 10% of these students receive an exemption under  
          this bill (which only impacts students over age 20), the total  
          revenue loss would be $267,000 annually. Neither CSU nor the CCC  
          know how many E-2 students are in their system. For every such  
          student qualifying for an exemption under this bill, the revenue  
          losses would be about $11,000 at CSU and $5,000 at the CCC.  
          (CSU's total undergraduate resident enrollment is more than  
          twice that of UC, so it's total revenue loss could be similar to  


          1)Background. The federal E-2 nonimmigrant visa is authorized  
            for a foreign national who is coming to the United States  
            solely to direct and develop the operations of an enterprise  
            in which the individual has invested or is actively involved  
            in the process of investing a substantial amount of capital.  
            Spouses and unmarried children under the age of 21 of an E2  
            nonimmigrant may be granted the same status to accompany the  


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            E2. As long as the dependents are in E2 status, they can  
            attend school without changing to another nonimmigrant status.

            E-2 visa holders are allowed a maximum initial stay of two  
            years.  Requests for extension of stay may be granted in  
            increments of up to two years each.  There is no maximum limit  
            to the number of extensions an E-2 nonimmigrant may be  
            granted. All E-2 nonimmigrants, however, must maintain an  
            intention to depart the United States when their status  
            expires or is terminated.

          2)Purpose. According to the author, "federal policy allows E-2  
            dependents to remain in the United States until age 21, at  
            which time they can transition to a student visa.  This  
            transition removes their exemption from nonresident tuition  
            under California policy. The end result is that an E-2  
            dependent pays in-state tuition until 21, but then pays  
            nonresident tuition at age 21 or older, even if the student  
            met the high school attendance and graduation requirements of  
            AB 540."

            According to the author, "E-2 visa holders have often lived in  
            the United States legally for decades, with their children  
            identifying as Americans. Their investments in the American  
            economy create jobs and contribute to California's tax base.  
            There is no reason to allow undocumented immigrants to receive  
            in-state tuition, but not legal, nonimmigrant aliens who meet  
            the same criteria."

          Analysis Prepared by:Chuck Nicol / APPR. / (916)  


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