BILL ANALYSIS Ó AB 1199 Page 1 ASSEMBLY THIRD READING AB 1199 (Brownley) As Amended January 4, 2012 Majority vote EDUCATION 10-0 ----------------------------------------------------------------- |Ayes:|Brownley, Norby, Ammiano, | | | | |Buchanan, Butler, Carter, | | | | |Eng, Beth | | | | |Gaines, Halderman, | | | | | Wagner | | | | | | | | ----------------------------------------------------------------- SUMMARY : Extends the term for members of local bond citizens' oversight committees from two consecutive two-year terms to three consecutive two-year terms. EXISTING LAW : 1)Authorizes, under Section 1 of Article XIIIA of the California Constitution, school districts, community college districts, or county offices of education to pass a general obligation bond by a 55% vote, provided that the local initiative meet specified accountability measures. 2)Requires the governing board of a school district or a community college district to establish and appoint members to an independent citizens' oversight committee within 60 days of the date that the governing board enters the election results on its minutes. (Education Code (EC) Section 15278) 3)Provides that the citizens' oversight committee shall consist of at least seven members to serve for a term of two years without compensation and for no more than two consecutive terms. Specifies that the committee shall be comprised of the following: a) One member active in a business organization; b) One member active in a senior citizens' organization; c) One member active in a bona fide taxpayers' AB 1199 Page 2 organization; d) For a school district, one member who is a parent or guardian of a child enrolled in the district. For a community college district, a student who is both currently enrolled in the district and active in a community college group, such as student government; and, e) For a school district, one member who is both a parent or guardian of a child enrolled in a district and active in a parent-teacher organization, such as the Parent Teacher Association or schoolsite council. For a community college district, one member who is active in the support and organization of a community college or the community colleges of the district, such as a member of an advisory council or foundation. (EC Section 15282) 4)Specifies duties of the citizens' oversight committee to include ensuring that bond revenues are expended only for specified purposes and ensuring that no funds are used for any teacher or administrative salaries or other school operating expenses. (EC Section 15278) FISCAL EFFECT : This bill is keyed non-fiscal by the Legislative Counsel. COMMENTS : Proposition 39 was passed by voters in 2000. Among others, the Proposition, a Constitutional Amendment, reduced the voting threshold for the passage of local general obligations bonds from two-thirds to 55% provided that the local bond initiative meets the following accountability measures: 1)The initiative identifies a list of the specific school facilities projects that will be funded by bond proceeds. 2)A requirement that the school board, community college board, or county office of education conduct an annual, independent performance audit to "ensure that the funds have been expended only on the specific projects listed." 3)A requirement that the school board, community college board, or county office of education conduct an annual, independent financial audit of the proceeds from the sale of the bonds until all of those proceeds have been expended for the school AB 1199 Page 3 facilities projects. Both the financial audit and performance audit must be reviewed by an independent citizens' oversight committee. AB 1908 (Lempert), Chapter 44, Statutes of 2000, a companion bill to Proposition 39, requires each district, within 60 days of the passage of a local bond with 55% vote to appoint a citizens' oversight committee to monitor and review expenditures to ensure compliance with Proposition 39 requirements, and to keep the public informed about bond expenditures. The bill specified that the oversight committee must be comprised of a minimum of seven members, appointed for no more than two consecutive two-year terms. The bill also specifies that members shall not be compensated and shall include representatives of business, senior citizen, taxpayers', parent teacher organizations, and parents of children enrolled in the school district. Under existing law, the State Board of Education (SBE) is authorized to waive certain sections of the EC or any regulations adopted by the SBE (EC Section 33050). Since 2006, the SBE has granted 19 requests from school districts to waive the term limit of members of local citizens' oversight committees to allow existing members to serve an additional term. The predominant reasons for the requests stem from districts' inability to find qualified individuals interested in serving on the committees and the need for continuity. This bill extends the term of the appointments by one term to enable oversight committee members to serve six years instead of four. A local governing board is not required to appoint individuals to three terms. This bill will alleviate the need for districts to pursue waivers to reappoint existing members to an additional term and reduce the workload at the SBE to process and approve the waivers. The author states, "School construction projects can take five years or longer. Enabling oversight committee members the ability to oversee projects from beginning to end enhances accountability of local dollars, as envisioned by the authors of Proposition 39." Analysis Prepared by : Sophia Kwong Kim / ED. / (916) 319-2087 FN: 0003008 AB 1199 Page 4