BILL ANALYSIS Ó Senate Appropriations Committee Fiscal Summary Senator Christine Kehoe, Chair AB 882 (Cook) Hearing Date: 8/25/2011 Amended: 6/30/2011 Consultant: Maureen Ortiz Policy Vote: VA: 7-0 _________________________________________________________________ ____ BILL SUMMARY: AB 882 conforms to federal law granting a member of the Armed Forces, or his or her dependent, entitlement to resident classification for so long as he or she is continuously enrolled at that institution. Additionally, AB 882 requires the Department of Veterans Affairs and the Employment Development Department to enter agreements with up to four counties that elect to participate in the newly created County Veterans Service Center Pilot Program. _________________________________________________________________ ____ Fiscal Impact (in thousands) Major Provisions 2011-12 2012-13 2013-14 Fund In-state tuition ----------------likely minor-------------- General _________________________________________________________________ ____ STAFF COMMENTS: SUSPENSE FILE. AS PROPOSED TO BE AMENDED. Committee amendments delete the County Veterans Service Center pilot program. According to the California State University, the California Community Colleges, and the University of California, all systems are already adhering to federal law regarding in-state tuition for members of the Armed Forces and their dependents, consequently, there will not be any new costs associated with the implementation of this bill. As far as implementation of the County Veterans Service Center Pilot Program, both the Department of Veterans Affairs (DVA) and the Employment Development Department (EDD) indicate that administrative and facility costs are unknown, but could be significant. For instance, EDD expresses that costs could be significant if staff had to be relocated to the counties where the pilot program AB 882 (Cook) Page 1 initiated. Existing law entitles the following individuals to resident status for the purpose of determining tuition and fees at the California Community Colleges, the University of California, and the California State University system: a) An undergraduate who is a dependent of a member of the Armed Forces stationed in California on active duty. b) A graduate student who is a dependent of a member of the Armed Forces for no more than one academic year, after which he or she is subject to the general provisions otherwise establishing student residency requirements. c) A member of the Armed Forces who is stationed in California on active duty, however, a member of the Armed Forces seeking a graduate degree is entitled to resident classification for no more than 2 academic years. Existing law also allows a dependent of a member of the Armed Forces to keep his or her resident classification until he or she has resided in the state for the minimum time necessary to become a resident in the event the member of the Armed Forces is transferred outside of the state or retires from active duty. Existing federal law prohibits a state receiving federal assistance under the Higher Education Opportunity Act from charging a higher rate for attendance at a public institution of higher education than is charged to residents of the state to a member of the Armed Forces who is on active duty for more than 30 days and whose domicile or permanent duty station is in the state, or to his or her spouse or dependent child. Federal law also requires this rate to remain in effect for as long as the individual is continuously enrolled at the institution, even if the member of the Armed Forces is relocated outside of California. AB 882 will conform to federal law by granting a member of the Armed Forces, or his or her dependent, entitlement to resident classification for so long as he or she is continuously enrolled at that institution. AB 882 (Cook) Page 2 The federal Workforce Investment Act of 1998 provides for workforce investment activities, some of which states can participate in. The California Workforce Investment Act requires each local workforce investment board to establish at least one full service one-stop career center in the local workforce investment area and to provide specified job placement services. The Department of Veterans Affairs and the Employment Development Department are currently authorized to enter into interagency agreements with counties that elect to participate in a workforce program. AB 882 establishes the County Veterans Service Center Pilot Program and requires the DVA and the EDD to enter into agreements with no more than 4 counties that elect to participate in that program no later than January 1, 2013. The pilot will be created to provide a mechanism to facilitate the delivery of complete, efficient information and other services to veterans in a convenient setting. It is intended to improve the state's delivery of services and benefits to veterans and to aid veterans in obtaining services and benefits to which veterans are entitled. The program must not conflict with any one-stop service program provided under federal guidelines. AB 882 requires the veteran service center to be staffed with persons knowledgeable in employment and veterans benefits issues including, but not limited to, workforce development, job training, educational benefits, compensation and pension benefits, and low-interest financing offered through the CalVet Home Loan Program. The center must contain all necessary resources, information, forms and other materials necessary for a veteran to receive full employment assistance and a complete assessment of veterans benefits to which he or she is entitled. The County Veterans Service Center Pilot Program will sunset January 1, 2016. AB 882 (Cook) Page 3