California Assembly Bill 540 (2001)

California Assembly Bill 540, often referred to as AB 540, is a California law enacted in 2001 that allows certain undocumented students, also known as "Dreamers," to pay in-state tuition fees at California's public colleges and universities.

Prior to AB 540, undocumented students, regardless of how long they had lived in California or their educational achievements within the state, were required to pay out-of-state tuition, which is significantly higher. This made higher education financially inaccessible for many.

AB 540 provides an exception to this rule. To be eligible, a student must meet specific criteria, which generally include:

• Having attended a California high school for at least three years, or attained credits equivalent to three years of high school coursework.
• Having graduated from a California high school or attained the equivalent, such as a GED or California High School Proficiency Examination (CHSPE).
• Having registered or is currently attending a California community college.
• Signing an affidavit stating that they will apply for legal residency as soon as they are eligible.

AB 540 does not grant legal residency or citizenship. It simply allows qualifying undocumented students access to the more affordable in-state tuition rates. The law aimed to provide equal opportunities for education and contribute to California's economy by investing in the education of its residents, regardless of immigration status.

The implementation and interpretation of AB 540 have been subject to legal challenges and adjustments over the years. Subsequent legislation, such as the California Dream Act, further expanded financial aid opportunities for students who qualify under AB 540.