AB 540 Page 1 Date of Hearing: May 3, 2001 ASSEMBLY COMMITTEE ON HIGHER EDUCATION Elaine Alquist, Chair AB 540 (Firebaugh) - As Amended: May 1, 2001 SUBJECT SUMMARY : Public postsecondary education: : residency. Allows specified nonresidents to meet state residency requirements for the purposes of establishing tuition levels at the California State University (CSU) and California Community Colleges (CCC). Specifically, this bill would: 1)Permit a nonresident to pay resident tuition at CSU or CCC provided that they meet all of the following requirements: a) b) c) Attended high school in California for three or more years; Graduated from a California high school; and, Continues his or her education at a California institution of higher education within one year of high school graduation or on or before January 1, 2002. 2)Request the Regents of the University of California (UC) to also exempt persons meeting the above criteria from paying non-resident tuition. 3)Allow persons meeting the above criteria to be deemed to meet residency requirements with respect to eligibility for California student aid programs. EXISTING LAW: 1)Establishes residency requirements for students attending a CSU or CCC campus and requires CSU and CCC to charge nonresident tuition to any student who is not a California resident, as defined. 2)Provides for the Cal Grant Program, administered by Student Aid Commission (SAC) to provide grants to financially needy students to attend college. The Cal Grant program consists of four types of awards: Transfer Entitlement. A, B, C T, and the Community College Students who are not residents of AB 540 Page 2 California, as defined, are ineligible for these grants. FISCAL EFFECT COMMENTS : Unknown : The educational rights of undocumented students is a longstanding issue that has been debated within legislative and judicial arenas for years. Current law was contested in a 1985 court case Leticia A. v. Board of Regents of the University of California . This challenge was filed by a group of undocumented students who were not recognized as California residents for purposes of determining tuition. At that time, the court ruled that charging nonresident tuition to undocumented students was unconstitutional because both UC and CSU used a different definition of "residency" for undocumented aliens than it used for United States (U.S.) citizens. The 1985 decision was later overridden by the 1990 Court of Appeal, Second District decision Regents of the University of California v. Los Angeles County Superior Court , also known as the Bradford decision. In Bradford , the court held that current law was constitutional and that the related Education Code sections were to be upheld. Both Leticia A and Bradford dealt solely with the issue of defining "California residency" for purposes of assessing nonresident tuition. Prior legislation on this topic, AB 592 (Polanco) of 1991, would have statutorily altered the definition of "California residency" as it applies to college tuition. This measure does not change the definition of "California resident" nor does it alter current law regarding the assessment of nonresident tuition to students that are not "California residents". Instead, this measure simply requires that CSU and CCC charge only mandatory systemwide fees and not nonresident tuition to those students who have: 1)Attended a California high school for at least three years; 2)Graduated from high school; and, 3)Obtained admission to a CSU or CCC campus. UC resident mandatory fees total $3,964 while nonresidents pay in excess of $10,000. CSU resident students pay $1,839 in mandatory fees, while nonresident students pay $7,380. Within AB 540 Page 3 CCC, resident students pay $11 per unit while non-residents pay $130 per unit. The current Cal Grant program provides several different categories of grants. While some Cal Grants provide initial access costs in the first year of higher education and other limited funding, the general awards provide tuition costs at UC and CSU or up to $9,708 at private postsecondary institutions. According to the author, many of the students that would benefit under this measure are children of parents who have been granted amnesty by the federal government and are waiting for their own applications for citizenship to be accepted by the Immigration and Naturalization Service. The majority of these students consider California their home and are expected to become citizens. Additionally, supporters argue that this measure will help talented California high school students, who cannot afford to pay nonresident tuition, to afford college. They point to several cases in which students were encouraged to attend college and apply for programs such as the Cal Grant, only to find that they are ineligible for aid and must pay an extremely high tuition due to their nonresident status. For many of these students, the biggest barrier to attending and enrolling in college is the cost. Under federal and state law, undocumented students, regardless of their academic achievement or financial need, are not eligible for federal or state financial aid nor are they eligible to receive campus-based aid or subsidized student loans. Previous Legislation : This measure is similar to AB 1197 (Firebaugh) of 1999 which was passed by the Committee on Higher Education, Assembly, and Senate, but vetoed by the Governor. AB 1197 had a provision requiring the students to be in the process of obtaining citizenship in order to benefit from the instate tuition. This is not a part of the current legislation. In his veto message, Governor Davis cited the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 (IIRIRA), by which undocumented aliens are ineligible to receive postsecondary education benefits based on state residence unless a citizen or national of the U.S. would be eligible for the same benefits without regard to their residence (Title VIII, Section AB 540 Page 4 1623). A close reading of the legislation shows that the benefit provided in AB 540 is available to "any person" (page 3, line 4) which could include non-residents as well as U.S. residents from other states, as long as they meet the outlined conditions. For example, a resident of Oregon who lives on the border and is educated in a California high school would be able to pay in-state tuition under this legislation. It is unlikely that the legislation in its current form is in violation with existing federal law. REGISTERED SUPPORT / OPPOSITION : Support American Civil Liberties Union Asian Pacific American Legal Center of Southern California California Association for Bilingual Education California Catholic Conference California Federation of Teachers California Immigrant Welfare Collaborative California School Employees Association California State Student Association California Teachers Association Center for Third World Organizations Children's Advocacy Institute Chinese for Affirmative Action Coalition for Humane Immigrant Rights of Los Angeles Community College League of California Immigrant Legal Resource Center Keek School of Medicine, University of Southern California Lambda Letters Los Angeles Center for Law and Justice Los Angeles Community College District Mexican American Legal Defense and Education Fund National Council of La Raza National Organization for Women Salvadoran American Leadership and Educational Fund Several Individual Letters Opposition California Coalition for Immigration Reform Individual Letters AB 540 Page 5 Analysis Prepared by 319-3960 : Paul Mitchell / HIGHER ED. / (916)