BILL NUMBER: AB 3132	AMENDED
	BILL TEXT

	AMENDED IN SENATE   AUGUST 5, 1996
	AMENDED IN SENATE   JULY 1, 1996
	AMENDED IN SENATE   JUNE 11, 1996

INTRODUCED BY  Assembly Members Firestone and Figueroa

                        FEBRUARY 23, 1996

   An act to amend Sections 89030 and 89500 of, to add Section
66606.2 to, and to add and repeal Section 89030.1 of, the Education
Code, to amend Sections 6516.9 and 11000 of the Government Code, and
to amend Sections  10701   10505, 10701, 
and 10705 of, and to add Section 10710 to, the Public Contract Code,
relating to postsecondary education.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 3132, as amended, Firestone.  Postsecondary education:
California State University  and the University of California
 .
   (1) Existing law establishes the California State University and
provides for its administration by the Trustees of the California
State University.
   This bill would enact the California State University Management
Efficiency Act of 1996, with provisions as specified.
   (2) Existing law defines the powers and duties of the trustees
with respect to the administration of the university.
   This bill would express the intent of the Legislature that, before
legislation that, by its terms, applies to the state or its
agencies, departments, or boards, may apply to the California State
University, that legislation should be compatible with the mission
and functions of the California State University in its provisions.
The bill would also express legislative intent that the California
State University not be governed by any statute enacted after January
1, 1997, that does not amend a previously applicable act and that
applies generally to the state or to state agencies, departments, or
boards, unless the statute expressly provides that the California
State University is to be governed by that statute.
   (3) Existing law requires the trustees to adopt rules and
regulations not inconsistent with the laws of this state for the
government of the trustees, their appointees and employees, and the
California State University.
   This bill  , until January 1, 2002,  would 
provide that the adoption of these rules and regulations shall not be
subject to the general provisions of law governing administrative
regulations and rulemaking.
   In addition, the bill, until January 1, 2002, would 
require the trustees to adopt, amend, or repeal regulations pursuant
to the bill, as specified, rather than pursuant to the general
provisions of law governing the adoption, amendment, and repeal of
administrative regulations.
   (4)  Existing law, known as the Administrative Procedures Act,
generally governs the adoption of administrative regulations by
state agencies.
   This bill would provide that the adoption of rules and regulations
by the trustees for the government of trustees, their appointees and
employees, and the California State University shall not be subject
to the general provisions of law governing administrative regulations
and rulemaking.
   (5)  Existing law permits a joint powers agency, the members
of which may conduct agricultural, livestock, industrial, cultural,
or other types of fairs and exhibitions, or educational programs and
activities, to establish and administer risk pooling arrangements for
the payment of general liability losses incurred by nonprofit
corporations conducting or benefiting agricultural, livestock,
industrial, cultural, or other types of fairs and exhibitions, and by
nonprofit organizations or auxiliary organizations operating
facilities, programs, or events at public schools, the California
Community Colleges, the California State University, or the
University of California.
   This bill, instead, would authorize a joint powers agency  ,
 or an entity provided for by a joint powers agreement,
conducting these activities, to establish and administer risk pooling
arrangements for the payment of any liability losses, rather than
general liability losses, for these purposes.
   In addition, the bill would authorize entities provided for by a
joint powers agreement, conducting these activities, to establish and
administer these risk pooling arrangements for the payment of
liability losses incurred by members of the entity.
   The bill, under these provisions, also would authorize risk
pooling arrangements to be established and administered for the
payment of educational programs and activities.
   The bill would specify that  ,  for these purposes, one
or more public agencies and one or more nonprofit corporations or
auxiliary organizations operating facilities, programs, or events at
public schools, the California Community Colleges, the California
State University, or the University of California may enter into a
joint powers agreement.  
   (5)  
   (6)  For the purposes specified in  (4) 
 (5)  above, existing law authorizes a joint powers agency
to provide the nonprofit corporations with any services provided to
the agency's members.
   This bill, instead, would authorize the joint powers agency or
entity to provide the nonprofit corporations with any services or
nonrisk pooling programs provided to the agency's or entity's
members.
   The bill would make other related changes.  
   (6)  
   (7)  Existing law defines "state agency," for the purposes of
numerous statutes in the Government Code, to include every state
office, officer, department, division, bureau, board, and commission.

   This bill would amend that definition to specify that "state
agency" for these purposes does not include the California State
University, with respect to specified statutes that are added or
amended effective on or after January 1, 1997, unless a statute
explicitly provides that it applies to the university.  
   (7)  
   (8)  Existing law, known as the California State University
Contract Law, defines a "project" to include the erection,
construction, alteration, painting, repair, or improvement of any
state structure, building, road, or other state improvement of any
kind which will exceed in cost a total of $10,000, and requires that
a project be under the sole and direct control of the trustees.
   This bill, for the purposes of the California State University
Contract Law, would change the definition of "project" to delete the
requirement that the total cost of the project must exceed a minimum
amount of $10,000.  The bill would also change the definition of
"trustees" under the law so that it includes the trustees and their
designees.  
   (8)  
   (9) Existing law authorizes the Regents of the University of
California to perform projects with university employees if the
regents deem that the award of a contract, the acceptance of bids or
the acceptance of further bids is not in the best interest of the
university, provided that (a) the estimated value of work to be so
performed shall not exceed $20,000, or (b) the project is for the
erection, construction, alteration, repair, or improvement of
experimental or diagnostic equipment, except as specified.
   This bill would additionally authorize the regents to perform
projects with university employees if the regents deem that the award
of a contract, the acceptance of bids or the acceptance of further
bids is not in the best interest of the university, provided that the
work is to be performed at a research facility located in a remote
and sparsely populated area and the estimated cost does not exceed
$50,000.
   (10)  The existing California State University Contract Law
authorizes the trustees, where the nature of the work, in their
opinion, is such that the application of all of the provisions of the
California State University Contract Law is not required and with
the approval of the Department of Finance, to carry out the project
if the estimated cost does not exceed $100,000.  Existing law
requires the trustees, in this instance, if the estimated cost of any
construction project or work exceeds $5,000, to solicit bids in
writing and award the work to the lowest responsible bidder or reject
all bids.  Existing law further authorizes the trustees to carry out
work in excess of $5,000, but not exceeding $20,000, by day labor.
   This bill would delete the requirement that the trustees obtain
the approval of the Department of Finance in this regard and would
increase the limit to $250,000.   The bill also would delete
(a) the requirement that the trustees solicit bids in writing and
award the work to the lowest responsible bidder, if the estimated
cost of a construction project or work exceeds $5,000, and (b) the
law authorizing the trustees to carry out work in excess of $5,000,
but not exceeding $20,000, by day labor. 
   In addition, the bill would add provisions authorizing the
trustees to award annual contracts that do not exceed $1,000,000 for
repair, remodeling, or other repetitive work to be done according to
unit prices, and to award these contracts to the lowest responsible
bidder, as specified.
   Vote:  majority.  Appropriation:  no.  Fiscal committee:  yes.
State-mandated local program:  no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.   This   Sections 2 to 7,
inclusive, and Sections 9 to 11, inclusive, of this  act shall
be known, and may be cited, as the California State University
Management Efficiency Act of 1996.
  SEC. 2.  Section 66606.2 is added to the Education Code, to read:
   66606.2.  Recognizing the unique mission and functions of the
California State University among the departments, agencies, and
boards of the state, it is the intent of the Legislature that both of
the following occur:
   (a) Before legislation that, by its terms, applies to the state or
its agencies, departments, or boards, may apply to the California
State University, the legislation should be compatible with the
mission and functions of the California State University.
   (b) The California State University not be governed by any statute
enacted after January 1, 1997, that does not amend a previously
applicable act and that applies generally to the state or to state
agencies, departments, or boards, unless the statute expressly
provides that the California State University is to be governed by
that statute.  
  SEC. 2.5.   
  SEC. 3.   Section 89030 of the Education Code is amended to
read:
   89030.  (a) The trustees shall adopt rules and regulations not
inconsistent with the laws of this state for the government of all of
the following:
   (1) The trustees.
   (2) The appointees and employees of the trustees.
   (3) The California State University.
   (b) The adoption of these rules and regulations shall not be
subject to Chapter 3.5 (commencing with Section 11340) of Part 1 of
Division 3 of Title 2 of the Government Code.
   (c) The rules and regulations shall be published for distribution
as soon as practicable after adoption.
   (d) This section shall be liberally construed in order that the
purposes of the Donahoe Higher Education Act pursuant to Part 40
(commencing with Section 66010) of Division 5 may be effectuated.

  SEC. 3.   
  SEC. 4.   Section 89030.1 is added to the Education Code, to
read:
   89030.1.  The trustees shall adopt, amend, or repeal regulations
pursuant to this section instead of pursuant to Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2 of
the Government Code.  As used in this section, "regulation" means
every rule, regulation, order, or standard of general application or
the amendment, supplement, or revision of any rule, regulation,
order, or standard adopted by the university to implement, interpret,
or make specific the law enforced or administered by it, or to
govern its procedure, except one that relates only to the internal
management of the university.  "Regulation" does not mean or include
any form prescribed by the university or any instructions relating to
the use of the form  , nor does it mean or include any action
listed in subdivision (a) of Section 11343 of the Government Code
 .
   (a) The trustees' office of general counsel shall review the
proposed regulations for matters such as necessity, authority,
clarity, consistency, reference, and nonduplication and recommend any
proposed action to the trustees.  For purposes of this section,
"necessity," "authority," "clarity," "consistency," "reference," and
"nonduplication" shall have the same meaning as defined by Section
11349 of the Government Code.
   (b) Notice of the proposed regulations shall be sent at least 45
days prior to the public hearing to those persons who have requested
notices of the meetings of the trustees and shall be available to the
public in electronic format.  The notice shall include the right of
the public to comment orally or in writing on the proposed action
either prior to or during the public hearing.
   (c) At the hearing, the public shall be provided the opportunity
to comment on the proposed action.
   (d) The trustees shall maintain a rulemaking file containing the
public notice, public comments, and minutes of the public hearing,
including the action taken by the trustees.
   (e) The trustees shall transmit the regulations as finally adopted
to the Secretary of State for filing.  Each regulation shall be
effective upon filing with the Secretary of State.
   (f) This section shall become inoperative on January 1, 2002, and
as of that date is repealed, unless a later enacted statute, which is
enacted before January 1, 2002, deletes or extends that date.

  SEC. 4.   
  SEC. 5.   Section 89500 of the Education Code is amended to
read:
   89500.  (a)  (1)  Notwithstanding any other provision of
law, the trustees shall provide by rule for the government of their
appointees and employees, pursuant to this chapter and other
applicable provisions of law, including, but not limited to:
appointment; classification; terms; duties; pay and overtime pay;
uniform and equipment allowances; travel expenses and allowances;
rates for housing and lodging; moving expenses; leave of absence;
tenure; vacation; holidays; layoff; dismissal; demotion; suspension;
sick leave; reinstatement; and employer's contribution to employees',
annuitants', and survivors' health benefits plans.  
   The  
   (2) The  rules adopted by the trustees relating to tenure,
layoff, dismissal, demotion, suspension, and reinstatement of
academic and administrative employees shall be adopted on or before
February 1, 1962, and become effective on July 1, 1962, with respect
to employees who are academic teaching and administrative employees
as defined in subdivision (1)(e) of Section 24301, as it read on June
30, 1961, as enacted by Chapter 2 of the Statutes of 1959.
   (b) The adoption of these rules and regulations shall not be
subject to Chapter 3.5 (commencing with Section 11340) of Part 1 of
Division 3 of Title 2 of the Government Code.
   (c) If the provisions of this section are in conflict with the
provisions of a memorandum of understanding reached pursuant to
Chapter 12 (commencing with Section 3560) of Division 4 of Title 1 of
the Government Code, the memorandum of understanding shall be
controlling without further legislative action, except that if the
provisions of a memorandum of understanding require the expenditure
of funds, the provisions shall not become effective unless approved
by the Legislature in the annual Budget Act.   
  SEC. 5.   
  SEC. 6.   Section 6516.9 of the Government Code is amended to
read:
   6516.9.  Notwithstanding any other provision of law, a joint
powers agency or entity provided for by a joint powers agreement
pursuant to this article, the members of which may conduct
agricultural, livestock, industrial, cultural, or other types of
fairs and exhibitions, or educational programs and activities, may
establish and administer risk pooling arrangements for the payment of
liability losses incurred by members of the joint powers agency or
entity and by nonprofit corporations conducting or benefiting
agricultural, livestock, industrial, cultural, or other types of
fairs and exhibitions, or educational programs and activities, and by
members of the joint powers agency or entity and by nonprofit
corporations or auxiliary organizations operating facilities,
programs, or events at public schools, the California Community
Colleges, the California State University, or the University of
California.  For purposes of this section, one or more public
agencies and one or more nonprofit corporations or auxiliary
organizations operating facilities, programs, or events at public
schools, the California Community Colleges, the California State
University, or the University of California may enter into a joint
powers agreement.  The joint powers agency or entity may provide the
nonprofit corporations with any services or nonrisk pooling programs
provided to the agency's or entity's members.  Aggregate payments
made under each risk pooling arrangement shall not exceed the amount
available in the pool established for that arrangement.  The joint
powers agency or entity may establish and administer as many separate
risk pooling arrangements as it deems desirable.  A liability risk
pooling arrangement established pursuant to this section also may
provide for the payment of losses incurred by special events users,
lessees, and licensees of facilities operated by nonprofit
corporations, auxiliary organizations, public schools, the California
Community Colleges, the California State University, or the
University of California and for the payment of losses incurred by
employees, participants and exhibitors in programs sponsored by those
entities.   
  SEC. 6.   
  SEC. 7.   Section 11000 of the Government Code is amended to
read:
   11000.  (a) As used in this title, "state agency" includes every
state office, officer, department, division, bureau, board, and
commission. As used in any section of this title that is added or
amended effective on or after January 1, 1997, "state agency" does
not include the California State University unless the section
explicitly provides that it applies to the university.
   (b) References to particular state agencies in this title, without
further identification, such as to the "Treasurer" or "Department of
General Services," are references to the state officer or agency
known by that name.   
  SEC. 7.   
  SEC. 8.  Section 10505 of the Public Contract Code is amended to
read: 
   10505.   (a)  The Regents of the University of California
may perform projects with university employees if the regents deem
that the award of a contract, the acceptance of bids or the
acceptance of further bids is not in the best interests of the
university, provided that (1) the estimated value of work to be so
performed shall not exceed twenty thousand dollars ($20,000) 
or   ,  (2) the project is for the erection,
construction, alteration, repair  ,  or improvement of
experimental or diagnostic equipment,  except that the
provisions of this   or (3) the work is to be performed
at a research facility located in a remote and sparsely populated
area and the estimated cost does not exceed fifty thousand dollars
($50,000).
   (b) This  section  shall   does 
not apply to the painting or repainting of a structure, building,
road, or improvement of any kind if the estimated value of 
such   the  painting or repainting work exceeds ten
thousand dollars ($10,000).   
  SEC. 9.   Section 10701 of the Public Contract Code is amended
to read:
   10701.  As used in this chapter:
   (a) "Project" includes the erection, construction, alteration,
painting, repair, or improvement of any state structure, building,
road, or other state improvement of any kind.
   (b) "Service contract" means any contract for services in
connection with a project other than a project contract, and
includes, but is not limited to, contracts for architectural,
engineering, planning, testing, general studies, or feasibility
services.
   (c) "Trustees" means the trustees of the California State
University and their designees.   
  SEC. 8.   
  SEC. 10.   Section 10705 of the Public Contract Code is
amended to read:
   10705.   (a)  Where the nature of the work in the opinion
of the trustees is such that the application of all of the
provisions of this chapter in connection therewith is not required,
the trustees may carry out the project pursuant to this section if
the estimated cost does not exceed two hundred fifty thousand dollars
($250,000).  
  SEC. 9.   
   (b) If the estimated total cost of any construction project or
work carried out under this section exceeds five thousand dollars
($5,000), the trustees shall solicit bids in writing and shall award
the work to the lowest responsible bidder or reject all bids.  The
trustees may carry out work in excess of five thousand dollars
($5,000) under this section by day labor if the trustees deem that
the award of a contract, the acceptance of bids, or the acceptance of
further bids is not in the best interests of the state, but the
amount of work performed by day labor under this section shall not
exceed the sum of twenty thousand dollars ($20,000).   
  SEC. 11.   Section 10710 is added to the Public Contract Code,
to read:
   10710.  (a) Notwithstanding any other provisions of this chapter,
the trustees may award annual contracts that do not exceed one
million dollars ($1,000,000) for repair, remodeling, or other
repetitive work to be done according to unit prices.  The contracts
shall be awarded to the lowest responsible bidder and shall be based
on plans and specifications for typical work.  No project shall be
performed under such a contract except by order of the trustees.  No
annual contracts may be awarded for any new construction under these
provisions.
   (b) (1) For purposes of this section, "unit price" means the
amount paid for a single unit of an item of work, and "typical work"
means a work description applicable universally or applicable to a
large number of individual projects, as distinguished from work
specifically described with respect to an individual project.
   (2) For purposes of this section, "repair, remodeling, or other
repetitive work to be done according to unit prices" shall not
include design or contract drawings.