Assembly Bill (AB) 540 is a California state law that allows certain nonresident students to attend a public/state college or university at the resident tuition cost.

Public/state colleges and universities are partially funded by residents' tax dollars. In return, residents of the state pay a discounted tuition rate at the state colleges and universities (Cal States, UCs), and a discounted tuition rate at their city or district local community college (LBCC). 

See the chart below for a breakdown of the differences in tuition rates. 

To qualify for the AB 540 exemption and apply for Dream Act funding, the following must be met by the student:

• Attendance for three full-time years or the equivalent at any combination of the following:

  1. 1. California high school

     2. California adult school (including non-credit courses offered by a California community college)

     3. California community college (maximum of two years of credit-bearing courses can count toward this requirement)

- OR -

• Three years of California high school coursework and three years of total attendance at a California elementary school, California secondary school, or any combination of the two.