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Legislation - AB 540 Law

AB 540, or California Education Code 68130.5, is a California state law that allows qualifying undocumented students to pay in-state tuition at public colleges in California. These include all colleges in the UC and CSU system, as well as all California community colleges. On October 12, 2001, Governor Gray Davis signed Assembly Bill 540 into law.  AB 540, authorized by Assembly Member Marco A. Firebaugh (D-South Gate), authorized undocumented students who meet specified criteria to pay in-state tuition at California public colleges and universities. Prior to AB 540, undocumented students attending the University of California, California State University, and California Community Colleges were charged out-of-state tuition.

California Dream Act of 2011 was made into law by the passage of 2 bills.

AB 130 Dream Act - Part I

  • Signed into law on July 25, 2011
  • Became effective January 1, 2012
  • Allows students who meet AB 540 criteria to apply for and receive private scholarships administered by the public colleges and universities, including:
  • Scholarships funded through private donors
  • Alumni contributions
  • Individual departmental efforts

AB 131 Dream Act - Part II

  • Signed into law on October 8, 2011
  • To become effective January 1, 2013
  • Allows students who meet AB 540 criteria to
  • Apply and receive institutional grants like State University Grant (SUG)
  • Apply for and receive state financial aid, including Cal Grants and Chafee Foster Youth Grants