I am correct in remembering that this Federal Law (that the CA one conradicts) dates from 1998 - signed into law by the Slick Meister?
The SF paper missed out giving a complete reference to the Federal Law...
"an alien who is not lawfully present in the United States shall not be eligible on the basis of residence within a State... for any postsecondary education benefit unless a citizen or national of the United States is eligible for such a benefit."
Aliens and Nationality - 8 USC Section 1623
Sec. 1623. Limitation on eligibility for preferential treatment of aliens not lawfully present on basis of residence for higher education benefits
(a) In general
Notwithstanding any other provision of law, an alien who is not lawfully present in the United States shall not be eligible on the basis of residence within a State (or a political subdivision) for any postsecondary education benefit unless a citizen or national of the United States is eligible for such a benefit (in no less an amount, duration, and scope) without regard to whether the citizen or national is such a resident.
(b) Effective date
This section shall apply to benefits provided on or after July 1, 1998."