What Is the SB 68 Tuition Exemption in California?

The SB 68 tuition exemption in California lets students who built their education in California schools pay in-state tuition at the University of California, California State University, and California Community Colleges, even when they don’t meet the standard residency rules. It expanded the earlier AB 540 exemption by adding community college attendance and associate degrees as qualifying paths into eligibility.1California Legislative Information. California Code EDC 68130.5 The money at stake is significant: nonresident tuition at UC runs roughly $39,260 above the resident rate each year.2Legislative Analyst’s Office. The 2026-27 Budget: Nonresident Tuition Rates at UC

Who Qualifies

The exemption is written for students who grew up in California schools but don’t fit the standard residency categories. That includes undocumented students, DACA recipients, and holders of T visas (trafficking victims) or U visas (crime victims). It also covers U.S. citizens and lawful permanent residents who happen to be classified as nonresidents for tuition purposes because they haven’t satisfied the one-year physical presence rule.

One group is excluded by name. Students on standard nonimmigrant visas, including F (student), J (exchange visitor), H (work), and B (tourist) visas, cannot use the exemption no matter how long they attended California schools.1California Legislative Information. California Code EDC 68130.5

The Attendance Requirement

You need three or more years of full-time attendance, or the credit equivalent, at qualifying California schools. The qualifying school types are:

  • California high schools, including those established by the State Board of Education
  • California adult schools run by a county office of education, a unified or high school district, or the Department of Corrections and Rehabilitation
  • California Community Colleges
  • Any combination of the above

That combination option is the piece SB 68 added. Under the earlier AB 540 rule, only high school attendance counted toward the three years. Now a student with one year of California high school and two years at a community college can combine them to meet the threshold.1California Legislative Information. California Code EDC 68130.5

What Counts as Full-Time

Full-time means something different at each school type. For a high school, it means enrollment as a regular student for the school year. For a community college, it means at least 12 semester units per year (or the quarter equivalent), or 420 class hours per year in noncredit courses.1California Legislative Information. California Code EDC 68130.5 Adult schools use the same 420-class-hour threshold.3Legal Information Institute. California Code of Regulations Title 5 Section 41906.5 – Nonresident Tuition Exemption Based on Prior California Education

The statute also recognizes the equivalent in earned credits. If you carried heavy course loads and accumulated the credits that three full years would normally produce, you can satisfy the attendance requirement in less calendar time.

The K–12 Pathway

An alternative route survives from the original AB 540. If you completed three or more years of full-time high school coursework in California and also attended California elementary schools, secondary schools, or both, for a total of three or more years, you qualify through that pathway.1California Legislative Information. California Code EDC 68130.5

The Graduation or Degree Requirement

Attendance alone isn’t enough. You also have to show one of the following:

  • A California high school diploma, GED, California High School Proficiency Exam (CHSPE), or HiSET certificate
  • An associate degree earned at a California Community College
  • Completion of the minimum requirements to transfer from a California Community College to a CSU or UC

The associate degree and transfer-eligibility options came in with SB 68, which matters most for students who went straight from high school into community college without finishing a diploma.1California Legislative Information. California Code EDC 68130.5

How to Claim the Exemption

You submit the California Nonresident Tuition Exemption Request, usually called the AB 540 affidavit, to your college’s admissions and records office.4California Community Colleges Chancellor’s Office. California Nonresident Tuition Exemption Request The form lists every qualifying California school you attended, your dates there, and your credits or hours. UC, CSU, and the community colleges each have their own version, but the substance is nearly identical.

You back the form up with official transcripts or attendance records from every California school you listed, plus proof of the graduation or degree milestone. The burden of proving eligibility is on you.3Legal Information Institute. California Code of Regulations Title 5 Section 41906.5 – Nonresident Tuition Exemption Based on Prior California Education Pulling transcripts from schools you left years ago can take weeks, so start a few months before the term you want the exemption to apply to.

The Immigration Attestation

If you don’t have lawful immigration status, the form includes an additional affidavit. By signing it, you attest that you have filed an application to legalize your status, or that you will file one as soon as you are eligible to do so.5California State University. California Nonresident Tuition Exemption Request “As soon as eligible” is the operative language, so you are not expected to file an application that doesn’t yet exist for your situation.

Do You Refile Each Year?

Generally no. Once your exemption is granted, you don’t need a new affidavit each term unless you stop attending for a full academic year and have to reapply to the school. If you transfer to a different California campus, you file a new form there.

What the Exemption Saves You

The dollars differ by system, and all three are large enough to make the paperwork worthwhile:

  • University of California: for 2026–27, nonresidents pay $54,848 in total tuition and fees against $15,588 for residents, a gap of about $39,260 per year.2Legislative Analyst’s Office. The 2026-27 Budget: Nonresident Tuition Rates at UC
  • California State University: the nonresident surcharge is $420 per semester unit, which works out to $12,600 a year for a student carrying 30 units.6California State University. Campus Costs of Attendance
  • California Community Colleges: the nonresident fee is $397 per unit for 2026–27 on top of the standard $46-per-unit enrollment fee, roughly $9,500 in surcharges for a student taking 24 units per year.

Over a four-year UC degree, the exemption can be worth more than $150,000. Two years at a community college before transferring saves close to $20,000.

Financial Aid After the Exemption

Resident tuition is only part of the cost. Students who qualify under SB 68 but cannot file a FAFSA, typically because they lack a Social Security number or qualifying immigration status, should file the California Dream Act Application (CADAA) instead. The CADAA is the gateway to Cal Grants and to institutional scholarships at UC, CSU, and the community colleges.7California Student Aid Commission. California Dream Act Application The priority deadline is March 2 each year, with a second September 2 deadline for community college students.8California Student Aid Commission. Cal Grant GPA Verification Form Cal Grant applicants also submit a GPA verification form by that same March 2 deadline.

One boundary matters here. Federal aid, meaning Pell Grants, federal work-study, and federal student loans, requires a FAFSA, which in turn requires U.S. citizenship, lawful permanent residency, or another qualifying immigration status.9California Student Aid Commission. How to Apply for Financial Aid Students who file the CADAA because they lack that status cannot receive any federal aid, regardless of need. California law cannot change that.

What Happens to Your Information

The statute says that information collected to administer the tuition exemption is confidential.1California Legislative Information. California Code EDC 68130.5 Your school cannot voluntarily send your SB 68 records to an outside agency.

Federal law adds another layer. Under FERPA, your education records, including the affidavit, cannot be disclosed without your written consent unless the requesting party has a valid judicial subpoena. Administrative subpoenas from immigration agencies are not enforceable on their own and require a separate federal court order. Schools also have to make a reasonable effort to notify you before releasing records in response to a subpoena, unless a court has specifically ordered otherwise.

A Caveat About UC

SB 68 directly binds CSU and the community colleges. The University of California sits in a different legal position because the UC Regents hold constitutional autonomy, so the legislature can only request that UC apply the same policy.1California Legislative Information. California Code EDC 68130.5 UC has adopted the exemption across its campuses, but the Regents could in theory change course without the legislature passing a new law.