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 








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          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.










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