by Jennifer A. Grady, Esq. What is the California Dream Act? Assembly Bill 540, passed in 2001, allows qualifying non-resident California students to pay resident fees at California’s colleges and universities.  AB 540 students include: (1) undocumented students; (2) students who are U.S. citizens, but who are not residents of California; and (3) usually dependent students whose parents are not residents of California. The California Dream Act, authored by Assembly Member Gil