BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



           ------------------------------------------------------------ 
          |SENATE RULES COMMITTEE            |                  AB 2266|
          |Office of Senate Floor Analyses   |                         |
          |1020 N Street, Suite 524          |                         |
          |(916) 651-1520         Fax: (916) |                         |
          |327-4478                          |                         |
           ------------------------------------------------------------ 
           
                                         
                                 THIRD READING


          Bill No:  AB 2266
          Author:   Bradford (D)
          Amended:  6/30/10 in Senate
          Vote:     21

           
           SENATE EDUCATION COMMITTEE  :  7-0, 6/23/10
          AYES:  Romero, Huff, Alquist, Emmerson, Liu, Price,  
            Simitian
          NO VOTE RECORDED:  Hancock, Wyland

           ASSEMBLY FLOOR  :  71-0, 5/17/10 - See last page for vote


           SUBJECT  :    School district preservation and destruction of  
          records

           SOURCE :     Los Angeles Unified School District


           DIGEST  :    This bill permits a school district to destroy  
          original records where a photographic, microfilm, or  
          electronic copy has been made, if the governing board  
          certifies that provisions are made to ensure that the  
          copies of the records meet specified requirements of the  
          Government Code.

           ANALYSIS  :    Current law authorizes the governing board of  
          a school district (1) to make photographic, microfilm or  
          electronic copies of original district records, and (2) to  
          destroy an original record, but requires, before an  
          original records is destroyed, that provisions be made for  
          permanently maintaining the copies in the files of the  
                                                           CONTINUED





                                                               AB 2266
                                                                Page  
          2

          district.  Furthermore, current law 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.

          Current law requires the State Controller, in consultation  
          with the Department of Finance, the California Department  
          of Education, and representatives of specified  
          organizations, to propose the content of a guide for the  
          required annual financial and compliance audits of school  
          districts, offices of county superintendents of schools,  
          and other local education agencies.  Statute further  
          requires the State Controller to submit the proposed audit  
          guide to the Education Audit Appeals Panel for review and  
          possible amendment.

          Existing law 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.  In addition, existing law requires  
          the Secretary of State to approve and adopt appropriate  
          standards for a "trusted system."  Defines a "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.

          This bill permits a school district to destroy original  
          records where a photographic, microfilm, or electronic copy  
          has been made, if the governing board certifies, in each  
          fiscal year, that provisions are made to ensure that the  
          copies of the records meet specified requirements.  More  
          specifically, this bill:

          1.Requires school districts to meet two requirements prior  
            to the destruction of original records as follows:

             A.    The copies are maintained in a "trusted system,"  
                as defined in the Government Code.

             B.    The copies, for purposes of records that are basic  
                to a required audit, are made in compliance with  
                standards, policies, or regulations approved and  

                                                           CONTINUED





                                                               AB 2266
                                                                Page  
          3

                adopted by the State Controller.

          2.Deletes the requirement that prohibits destroying  
            original records that are basic to any required audit  
            prior to two years elapsing from completion of the audit.

          3.Specifies the State Controller to work in coordination  
            with the Secretary of State to develop record and  
            retention standards, policies, or regulations, consistent  
            with the applicable use of a "trusted system," that  
            permits the governing board of a school district,  
            effective January 1, 2013, to reproduce a record, that is  
            basic to a required audit, that is a nonerasable optical  
            image reproduction or any other reproduction of an  
            original record or document if additions, deletions, or  
            changes to the original record or document are not  
            permitted by the technology.

          4.Specifies destruction of original records does not  
            relieve a school district from any requirements in law to  
            produce an original record that is basic to a required  
            audit, unless that record can be reproduced from a copy  
            that was made from the original record.

           Comments

          Need for the Bill  .  According to the author's office, as a  
          result of difficult economic times, school districts around  
          the state have searched for ways to reduce their operating  
          budgets - one way is in the use of "trusted systems" of  
          copying original documents - thereby reducing the need to  
          maintain, in some instances warehouses of documents,  
          decreasing non-instruction expenditures, and preserving  
          documents.
           
          "Trusted System" Will be used in Courts  .  California, for  
          purposes of presentations of writings in a court, allows  
          the admissible use of nonerasable optical image of  
          reproduction provided that additions, deletion, or changes  
          to the original document are not permitted by the  
          technology if the copy or reproduction was made and  
          preserved as part of the records of a business (which  
          includes every kind of business, government activity,  
          professional occupation, calling, or operation of  

                                                           CONTINUED





                                                               AB 2266
                                                                Page  
          4

          institutions, whether carried on for profit or not) in the  
          regular course of that business.

          Further, once the Secretary of State adopts standards and  
          regulations as defined in Government Code 12168.7,  
          nonerasable optical image reproductions or any other  
          reproduction of a public record by a trusted system if  
          additions, deletions, or changes to the original document  
          are not permitted by the technology, will be a type of  
          evidence of a writing as admissible as the writing itself.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  No    
          Local:  No

           SUPPORT  :   (Verified  6/29/10)

          Los Angeles Unified School District (source)

          OPPOSITION  :    (Verified  6/29/10)

          State Controller's Office (prior version)

           ARGUMENTS IN SUPPORT  :    Proponents argue that various  
          governmental entities are moving in the direction of  
          maintaining "trusted systems" of copies to streamline  
          processes and save money, but to provide a safe, secure and  
          inexpensive alternative to maintaining original documents  
          while preserving the validity and authenticity of the  
          original document.


           ARGUMENTS IN OPPOSITION  :    According to the State  
          Controller's Office, government auditing standards related  
          to evidence and fraud detection require review of original  
          documents.  If this bill were enacted, auditors may be  
          unable to provide unqualified audit opinions - on the  
          propriety, validity, and authenticity of fiscal information  
          - since the audit could not be conducted in accordance with  
          audit standards.  If original documents were not available,  
          an auditor would have to perform or require school  
          districts to perform additional procedures to authenticate  
          copied documents.

          Opponents further contend that if original documents are  

                                                           CONTINUED





                                                               AB 2266
                                                                Page  
          5

          not available for audit review, audits may be compromised  
          and a school district's federal and state funding could be  
          negatively impacted.  
           

           ASSEMBLY FLOOR  : 
          AYES:  Adams, Ammiano, Anderson, Arambula, Beall, Bill  
            Berryhill, Blakeslee, Block, Blumenfield, Bradford,  
            Brownley, Buchanan, Carter, Chesbro, Conway, Cook, Coto,  
            Davis, De La Torre, De Leon, DeVore, Emmerson, Eng,  
            Evans, Feuer, Fletcher, Fong, Fuentes, Fuller, Gaines,  
            Galgiani, Garrick, Gilmore, Hagman, Hall, Harkey,  
            Hayashi, Hernandez, Hill, Huber, Huffman, Jeffries,  
            Jones, Knight, Lieu, Logue, Bonnie Lowenthal, Ma,  
            Mendoza, Miller, Monning, Nava, Nestande, Niello,  
            Nielsen, Norby, V. Manuel Perez, Portantino, Ruskin,  
            Salas, Saldana, Skinner, Smyth, Solorio, Audra  
            Strickland, Swanson, Torres, Torrico, Tran, Villines,  
            John A. Perez
          NO VOTE RECORDED:  Bass, Tom Berryhill, Caballero, Charles  
            Calderon, Furutani, Silva, Torlakson, Yamada, Vacancy


          CPM:cm  6/29/10   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

                                ****  END  ****

















                                                           CONTINUED