LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
200 W. Washington St., Suite 301
Indianapolis, IN 46204
(317) 233-0696
iga.in.gov
FISCAL IMPACT STATEMENT
LS 6527 NOTE PREPARED: Dec 20, 2023
BILL NUMBER: HB 1170 BILL AMENDED:
SUBJECT: Tuition and Educational Cost Exemptions.
FIRST AUTHOR: Rep. Hamilton BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State
XDEDICATED
FEDERAL
Summary of Legislation: This bill repeals a provision concerning certain disability ratings, as determined
by the United States Department of Veterans Affairs, and educational cost exemptions.
Effective Date: July 1, 2024.
Explanation of State Expenditures: Repeal of Reduction of Fee Exemption Based on Disability Rating –
There will be minimal impact on expenditures for fee exemptions due to this bill in the near term because
very few CVO applicants for financial assistance have parents who enlisted after June 30, 2011. The Indiana
Department of Veterans Affairs (IDVA) reports that applicants who fall under the 2011 enlistment rule have
thus far had disability ratings of 80% or above and are receiving the same 100% exemption to which they
would be entitled under this bill. However, this bill will increase expenditures for CVO fee remissions in the
future as children of veterans who enlisted after June 30, 2011, reach college age and become eligible. The
full impact of the proposal will likely occur 10 to 20 years from now, at which point the cost could be
significant.
The bill removes the provision which reduces the fee exemption for students based on their parents’
disability rating. This aspect of current law applies only to students whose parents joined the military after
June 30, 2011. Under current law, approximately 72% of that cohort would experience a significant decrease
in their benefits relative to those whose parents joined the military before June 30, 2011. Under this bill, all
students eligible for a CVO fee remission would be eligible for the full fee remission.
Commission for Higher Education (CHE) – The CHE administers the CVO fee exemptions and would have
to make administrative changes based on the provisions of this bill. The provision that removes the reduction
HB 1170 1 of the fee exemption based on the parent’s disability rating would simplify administration of the fee
exemption, while processing and awarding refunds of tuition and fees paid would represent an increase in
workload for CHE. The bill’s requirements should be able to be implemented with no additional
appropriations, assuming near customary agency staffing and resource levels.
Department of Veterans Affairs (IDVA) – Determining whether students are eligible for a fee exemption
based on the service connected death or disability of a parent is within the IDVA’s routine administrative
functions and should be able to be implemented with no additional appropriations, assuming near customary
agency staffing and resource levels.
Explanation of State Revenues:
Explanation of Local Expenditures:
Explanation of Local Revenues:
State Agencies Affected: Commission for Higher Education, Indiana Department of Veterans Affairs, state
educational institutions.
Local Agencies Affected:
Information Sources: Anthony Weber, IDVA; US Department of Veterans Affairs VETPOP2020
dataset, https://www.va.gov/vetdata/veteran_population.asp
Fiscal Analyst: Alexander Raggio, 317-234-9485.
HB 1170 2