On Sept. 15 in Martinez v. Regents, the California Court of Appeal reversed a trial court's dismissal of a suit challenging the legality of AB 540. The Court of Appeal's decision returns the case to the trial court for further proceedings. AB 540 exempts students who attended a California high school for at least three years and graduated from a California high school from paying non-resident tuition at California State University and the California Community Colleges. The University of California has adopted policies aligning its tuition requirements to the other higher education segments.

The University of California will request that the California Supreme Court review the Court of Appeal decision and reinstate the trial court's dismissal of the case. Until the appeal process is completed and the case is returned to the trial court for further proceedings, UC's AB 540 exemption will remain in effect and qualifying students will not be charged non-resident tuition. The university will keep students and the public updated on the status of the litigation.