BILL ANALYSIS                                                                                                                                                                                                    






                         SENATE COMMITTEE ON EDUCATION
                              Gloria Romero, Chair
                           2009-2010 Regular Session
                                        

          BILL NO:       SB 365
          AUTHOR:        Ducheny
          INTRODUCED:    February 25, 2009
          FISCAL COMM:   Yes            HEARING DATE:  April 15, 2009
          URGENCY:       No             CONSULTANT:Kathleen Chavira

          NOTE:  This bill has been referred to the Committees on  
          Education and Rules.  A "do pass" motion should include  
          referral to the Senate Rules Committee.  

           SUBJECT  :  State Allocation Board Reorganization
          
           SUMMARY  

          This bill requires that the functions, officers, and  
          employees of the Office of Public School Construction  
          (OPSC) be transferred from the jurisdiction of the  
          Department of General Services (DGS) to that of the State  
          Allocation Board (SAB) on January 1, 2010, and changes the  
          membership of the SAB, as specified.  

           BACKGROUND  

          Current law establishes the 10-member State Allocation  
          Board and provides that members consist of the Director of  
          Finance, the Director of DGS, a person appointed by the  
          Governor, the Superintendent of Public Instruction, three  
          members of the Senate appointed by the Senate Committee on  
          Rules, two of whom shall belong to the majority party and  
          one of whom shall belong to the minority party, and three  
          members of the Assembly appointed by the Speaker of the  
          Assembly, two of whom shall belong to the majority party  
          and one of whom shall belong to the minority party.   
          Current law authorizes the SAB to apportion funds for the  
          construction of school facilities and to establish any  
          qualifications, procedures and policies, and rules and  
          regulations it deems necessary to administer and expend  
          funds made available for school facility construction  
          purposes.  

          Current law also establishes the OPSC within the DGS and  




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          authorizes DGS to assign an executive officer to the OPSC.   
          The executive officer may be appointed by the Governor,  
          upon recommendation of the Director of DGS and serves at  
          the Director's pleasure.  The OPSC serves as staff to the  
          SAB and among other things, implements and administers the  
          School Facility Program and other programs of the SAB,  
          prepares recommendations for the SAB's review and approval,  
          prepares regulations, policies and procedures which carry  
          out the mandates of the SAB, and prepares agendas for the  
          SAB meetings.


           ANALYSIS
           
           This bill  :

          1)   Requires the State Allocation Board (SAB), rather than  
               the Director of the Department of General Services  
               (DGS) to administer the School Facilities Program.

          2)   Requires the transfer of the functions and staff of  
               the Office of Public School Construction (OPSC) from  
               DGS to the SAB on January 1, 2010.  More specifically  
               it:

                    a)             Requires the transfer of OPSC  
                    civil service staff with no loss of civil service  
                    rights and privileges.

                    b)             Requires the transfer of general  
                    services, procurement and executive officer  
                    positions of the OPSC to the SAB and further:

                           i)                  Requires vacancies in  
                         these positions be filled by Governor's  
                         appointment, upon the recommendation of the  
                         SAB. 

                           ii)     Requires duties and salaries of  
                         each officer be determined by the SAB.

          3)   Changes the membership of the SAB.  Specifically it:

                    a)             Makes the Director of Finance and  
                    the Director of General Services nonvoting  
                    members of the SAB.




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                    b)             Reduces the number of Senate  
                    appointments on the SAB from three to two members  
                    and authorizes the Senate Rules Committee to  
                    appoint one public member to the SAB.

                    c)             Reduces the number of Assembly  
                    appointments on the SAB from three to two members  
                    and authorizes the Speaker of the Assembly to  
                    appoint one public member to the SAB.

                    d)             Requires that the Governor appoint  
                    four public members that have relevant experience  
                    that may include, but not be limited to,  
                    educational facilities construction, engineering,  
                    finance, or expertise in compliance with federal  
                    planning and construction standards for students  
                    with special needs.

                    e)             Requires that members serve  
                    staggered 4-year terms, as specified and  
                    authorizes the re-appointment of members for  
                    additional terms. 

          4)   Requires that DGS provide assistance to the SAB  
               including the provision of office space, as specified.

          5)   Requires the SAB to elect a chair and vice-chair from  
               its membership to serve one year terms, for no more  
               than two consecutive terms.

          6)   Requires the SAB, by a majority vote, to appoint and  
               determine salary and other compensation for an  
               executive officer.

          7)   Eliminates the duties/need for an assistant executive  
               officer. 

           STAFF COMMENTS  

           1)   Little Hoover Commission Report  .  In August 2006, the  
               legislative members of the State Allocation Board  
               submitted a written request to the Little Hoover  
               Commission to conduct a study of the State Allocation  
               Board (SAB) and its interaction with the Office of  
               Public School Construction (OPSC) and the Department  




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               of General Services (DGS). In August 2007, the  
               Commission issued its report, which, among other  
               things, made the following three recommendations:

                     The State Allocation Board should be reformed  
                 to increase public and expert participation, better  
                 balance executive and legislative roles and improve  
                 accountability and better represent California's  
                 geographic diversity.  The report proposed specific  
                 changes to the SAB composition, recommended that  
                 members serve staggered, fixed terms and recommended  
                 that the director of the Department of Finance or  
                 his or her designee serve as the statutory chair of  
                 the SAB.

                     The SAB should be an independent entity. Staff  
                 and functions of the Office of Public School  
                 Construction should be transferred from the DGS to  
                 the SAB which could then contract with the DGS for  
                 administrative support and contract for or hire its  
                 own legal services.  Additionally, it recommended  
                 that the SAB develop and submit its own budget, hire  
                 its own executive officer and eliminate the position  
                 of assistant executive officer with those functions  
                 reallocated, as appropriate, to the executive  
                 officer and deputy executive officer of the SAB.

                     To increase its transparency to the public and  
                 stakeholders, the board should formally adopt its  
                 own rules of order.

               The provisions of this bill generally implement some  
               of the changes proposed in the Little Hoover  
               Commission report. 

           1)   What's the effect  ?  In its review, the Little Hoover  
               Commission opined that the SAB, while operating  
               adequately, potentially was vulnerable to political  
               manipulation.  The transfer of the OPSC staff directly  
               to the SAB responds to concerns raised by the  
               Commission that the SAB should be an independent  
               entity with the authority to develop its own budget  
               and hire its own executive officer.  The Commission  
               also opined that the legislative majority and pleasure  
               appointments on the SAB had, on occasion, permitted  
               politics to trump policy in allocation decisions.  




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               The new structure proposed by this bill creates a  
               9-member board.  It  includes the Superintendent of  
               Public Instruction, eliminates the legislative  
               majority by reducing the total number of legislative  
               appointees to four, and  increases the number of  
               Governor's public appointees from one to four.  The  
               Director of Finance and the Director of DGS, who have  
               arguably served as Governor's representatives in the  
               past, would now only serve on the SAB as non-voting  
               members.

           2)   Prior legislation  .  This bill is very similar to SB  
               1552 (Margett, 2008) which was hear by this committee  
               and passed by a vote of 9-0.  SB 1552 was ultimately  
               held under submission by the Assembly Appropriations  
               Committee.  

           SUPPORT  

          None received.

           OPPOSITION

           None received.