BILL ANALYSIS Ó Senate Appropriations Committee Fiscal Summary Senator Christine Kehoe, Chair AB 1056 (Fong) Hearing Date: 08/25/2011 Amended: 07/06/2011 Consultant: Jacqueline Wong-HernandezPolicy Vote: Education 8-0 _________________________________________________________________ ____ BILL SUMMARY: AB 1056 requires the California Community Colleges (CCC) Chancellor's Office to implement a process to facilitate the electronic receipt and transmission of student transcripts. This bill would also require all CCC districts, contingent upon the Chancellor's Office receiving new, one-time state, federal, or philanthropic funding sufficient for this purpose and as a condition for receiving funding, to implement the process, as specified. This bill requires the Chancellor's Office to report to appropriate legislative committees, as specified. _________________________________________________________________ ____ Fiscal Impact (in thousands) Major Provisions 2011-12 2012-13 2013-14 Fund Electronic transcript procedure Likely minor costs to Chancellor's Office General CCC implementation $167 $168 General/Federal Savings will likely offset ongoing, out-year costs; Local Potentially significant reimbursable mandate General _________________________________________________________________ ____ STAFF COMMENTS: SUSPENSE FILE. This bill requires the CCC Chancellor's Office, by January 1, 2012, to implement a process to facilitate the electronic receipt and transmission of student transcripts. Currently, 43 CCCs use electronic transcripts through e-Transcript, and the Chancellor's office intends to expand its use to meet the bill's requirements. E-Transcript is a statewide Internet-based system AB 1056 (Fong) Page 1 called e-Transcript California. By connecting to this system, colleges are able to convert from paper-based transcripts to electronic transcripts. The program allows for requesting, transmitting, tracking, downloading, and viewing academic transcripts. The cost to convert the remaining campuses to e-Transcript would be $335,000 ($5,000 per campus). Implementation of this bill is contingent upon the Chancellor's Office receiving one-time state, federal, or philanthropic funds for this purpose. The bill specifies that as a condition of receiving this funding, CCCs must implement the electronic transcript process; it also provides that the Chancellor's Office shall determine how to disperse those funds to participating CCCs. It appears that the author's intent is to make funding available to CCCs for the express purpose of converting to electronic transcripts. The author may wish to clarify whether this bill is a requirement for all CCCs, or if it is only a requirement for accessing specified funding. Even if the bill mandates compliance by all CCCs, it is unlikely to result in reimbursement though the mandate claims process for converting to e-Transcript, since funding will be provided for the mandated activities. Should the Chancellor's Office create a procedure that is not fully funded (e.g. requires additional training or unanticipated workload), the state could be forced to reimburse CCCs' additional costs. E-Transcript also costs $5,500 annually per campus to continue the system. According to the Chancellor's Office, based upon data from campuses that already participate, this cost is more than offset by savings achieved through a reduction in paper transcripts and related workload. However, if Chancellor's Office develops a process or regulations that require ongoing participation in e-Transcript, the required ongoing costs could constitute a state reimbursable mandate, even if the actual CCC seeking reimbursement experiences a net savings from the program. This bill requires the Chancellor's Office to report to the Legislature on the progress of implementing electronic transcripts, a year after the funds are dispersed. The Chancellor's Office has indicated that this task would be minor and could be absorbed within existing resources. AB 1056 (Fong) Page 2