BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2266
                                                                  Page  1

          Date of Hearing:   April 7, 2010

                           ASSEMBLY COMMITTEE ON EDUCATION
                                Julia Brownley, Chair
                AB 2266 (Bradford) - As Introduced:  February 18, 2010
           
          SUBJECT  :   School district records

           SUMMARY  :   Extends the authorization for school districts to  
          destroy records, which have been copied by photographic,  
          microfilm or electronic means, to include, under specified  
          conditions, original records that are basic to any required  
          audit.   Specifically,  this bill  :

          1)Deletes the requirement that no original record that is basic  
            to any required audit be destroyed prior to the second July  
            1st succeeding the completion of the audit.

          2)Requires, before an original record is destroyed, that  
            provisions be made for permanently maintaining the copies in a  
            "trusted system," as defined by current law, and for making  
            the copies of records in compliance with standards recommended  
            by the American National Standards Institute (ANSI) or the  
            Association for Information and Image Management (AIIM).

           EXISTING LAW  :

          1)Authorizes the governing board of a school district to make  
            photographic, microfilm or electronic copies of original  
            district records.

          2)Authorizes the destruction of an original record, but  
            requires, before an original record is destroyed, that  
            provisions be made for permanently maintaining the copies in  
            the files of the district.

          3)Prohibits the destruction of an original record that is basic  
            to any required audit prior to the second July 1st succeeding  
            the completion of the audit.

          4)Authorizes the Superintendent of Public Instruction to adopt  
            regulations governing the destruction of records, whenever the  
            destruction of records of a district is not otherwise provided  
            for by law; also authorizes the governing board of the  
            district to destroy such records of the district in accordance  








                                                                  AB 2266
                                                                  Page  2

            with those regulations.

          5)States Legislative recognition of the need to adopt uniform  
            statewide standards for the purpose of storing and recording  
            permanent and nonpermanent documents in electronic media, and  
            requires the Secretary of State to approve and adopt  
            appropriate standards established by ANSI or AIIM.

          6)Defines "trusted system" to mean a combination of techniques,  
            policies, and procedures for which there is no plausible  
            scenario in which a document retrieved from or reproduced by  
            the system could differ substantially from the document that  
            is originally stored.

           FISCAL EFFECT  :   This bill is keyed non-fiscal.

           COMMENTS  :   The U.S. Environmental Protection Agency estimates  
          that a typical office operation in the United States generates  
          approximately 10,000 sheets of used paper per year for each  
          employee.  10,000 sheets of unused office bond paper makes a  
          stack that is four feet high, though used paper takes up more  
          space.  Thus the typical office operation will generate  
          approximately three standard file boxes full of paper each year  
          for each employee.  In a school district operation most of this  
          paper would constitute an original record and be subject to  
          document retention requirements.  In addition, many of these  
          documents, including period-by-period or day-by-day classroom  
          attendance sheets, financial statements, budget documents, and  
          payroll records, fall under the prohibition against destruction  
          of auditable documents for up to two years or fall into a  
          category of documents that must be permanently retained in paper  
          form.  It is no wonder that, according to the author, the  
          sponsor of this bill (the Los Angeles Unified School District),  
          "discovered that the district was paying $1.2 million per year  
          in warehouse costs to store documents as a result of various  
          state audit requirements.  This cost is paid from the district's  
          general fund and could otherwise be used to fund vital jobs and  
          operations eliminated due to budget cuts." 

          Clearly state and local agencies must maintain records generated  
          by day to day operations, and must be able to provide  
          documentation to auditors that provide necessary information for  
          the review and oversight of those operations.  As early as the  
          1950s, however, the state sought to eliminate excess paper  
          records by authorizing specified state and local governmental  








                                                                  AB 2266
                                                                  Page  3

          entities to destroy original records that had been reproduced  
          through photographic or microfilm technologies; at the same  
          time, the state required a delay in the destruction of auditable  
          records until up to two years after the completion of any audit.  
           In the 1980s the Legislature moved to embrace emerging  
          technology by extending this authorization to include the  
          reproduction of records on electronic media; separate bills [SB  
          889 (Bergeson), Chapter 57, Statutes of 1989 and SB 849  
          (Bergeson), Chapter 1061, Statutes of 1991] made this  
          authorization subject to standards, that would ensure the  
          authenticity of the reproduction, to be developed by the  
          National Institute of Standards and Technology, and by ANSI or  
          AIIM, respectively.  AB 972 (Torlakson), Chapter 677, Statutes  
          of 1998, as amended by SB 2067 (Bowen), Chapter 569, Statutes of  
          2000, required the Secretary of State to adopt, as regulations,  
          the standards developed by ANSI or AIIM to govern photographic,  
          microfilm and electronic copying of specified state and local  
          records.  AB 1600 (Assembly Committee on Education), Chapter  
          646, Statutes of 1999, amended the Education Code to allow  
          school districts to make electronic copies of any records in the  
          district prior to destruction, as specified, but continued the  
          required delay in the destruction of auditable records.

          The Secretary of State has continued to work toward adoption of  
          standards to govern the conversion of documents to electronic  
          media prior to destruction and to govern the storage of  
          electronic documents in a trusted system.  A public hearing on  
          the proposed "trustworthy electronic document or record  
          preservation regulations" was held by the Secretary of State on  
          September 15, 2009.  Consistent with the Administrative  
          Procedures Act, a series of 45-day and 15-day comment periods,  
          and the resulting review of comments, has led to subsequent  
          changes to the proposed regulations. The most recent 15-day  
          comment period ended on March 15, 2010, and the Secretary of  
          State is in the process of reviewing comments that were  
          received.  A final version of the proposed regulations will be  
          submitted to the Office of Administrative Law at the end of this  
          process.

          According to the author, this bill will "authorize a school  
          district to make reproductions of the original document  
          utilizing standards and guidelines as recommended [ANSI] or  
          [AIIM] and maintain those documents utilizing a "trusted  
          system", as defined in Government Code Section 12168.7."  The  
          author also states that the bill would specifically, "Allow  








                                                                  AB 2266
                                                                  Page  4

          school districts to utilize existing technology and save general  
          fund money expended on storage cost as a result of requirements  
          to maintain paper documents for upwards of 8 years." and  
          "Provide a safe, secure and inexpensive alternative to  
          maintaining original documents that also protects the validity  
          and authenticity of the original document for audit purposes." 

          Essentially, this bill will extend a school district's authority  
          to destroy original records, once they have been copied, to  
          include records that are basic to a required audit without the  
          currently required delay in destruction.  As a safeguard against  
          concern over any premature loss of auditable records, the bill  
          also moves to clarify and enhance the standards that copies of  
          records must meet prior to the destruction of those records.  If  
          those enhanced standards are adhered to by school districts,  
          then this expanded authority will allow a district to use  
          current technologies to meet the district's fiscal and legal  
          obligations, while at the same time generating a cost savings.

          Committee amendments:  Committee staff recommends the following  
          amendments to this bill:

          1)Make references to "copies of records" and to "reproductions  
            of records" to consistently read as "copies of records."

          2)Require a governing board of a school district that chooses to  
            destroy records to annually certify that copies of records  
            destroyed are maintained and copied consistent with the  
            requirements proposed in this bill and specified in law.

          3)Clarify that electronic copies of records must be made in  
            compliance with regulations adopted by the Secretary of State,  
            or until such regulations are adopted with standards developed  
            by ANSI or AIIM.

          4)Clarify that nothing in this bill be interpreted to relieve a  
            governing board of a school district from any requirement in  
            law to produce an original record that is basic to any  
            required audit, unless that record can be reproduced from the  
            photographic, microfilm, or electronic copy that was made from  
            the original record.

          Previous legislation:  AB 1600 (Assembly Committee on  
          Education), Chapter 646, Statutes of 1999, amended the Education  
          Code to allow school districts to make electronic copies of any  








                                                                  AB 2266
                                                                  Page  5

          records in the district prior to destruction.  AB 972  
          (Torlakson), Chapter 677, Statutes of 1998, as amended by SB  
          2067 (Bowen), Chapter 569, Statutes of 2000, required the  
          Secretary of State to adopt regulations using the standards  
          developed by ANSI or AIIM to govern photographic, microfilm and  
          electronic copying of specified state and local records.  SB 849  
          (Bergeson), Chapter 1061, Statutes of 1991, permits state  
          agencies, counties, cities, and special districts to maintain  
          records in reproduced formats or storage media if the  
          reproduction or storage medium is in compliance with minimum  
          standards or guidelines, or both, as recommended by ANSI or  
          AIIM.  SB 889 (Bergeson), Chapter 57, Statutes of 1989, requires  
          cities, counties and special districts to maintain permanent  
          copies of their records, papers, and documents in their original  
          paper form, or on microfilm, microfiche or in an electronic data  
          processing system

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          Los Angeles Unified School District (Sponsor)

           Opposition 
           
          None on file
           
          Analysis Prepared by  :    Gerald Shelton / ED. / (916) 319-2087