BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                   SB 365|
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                                 THIRD READING


          Bill No:  SB 365
          Author:   Ducheny (D)
          Amended:  4/23/09
          Vote:     21

           
           SENATE EDUCATION COMMITTEE  : 6-3, 04/15/09
          AYES: Romero, Alquist, Hancock, Liu, Padilla, Simitian
          NOES: Huff, Maldonado, Wyland

           SENATE APPROPRIATIONS COMMITTEE  :  7-5, 5/28/09
          AYES:  Kehoe, Corbett, DeSaulnier, Hancock, Leno, Oropeza,  
            Yee
          NOES:  Cox, Denham, Runner, Walters, Wyland
          NO VOTE RECORDED:  Wolk


           SUBJECT  :    State Allocation Board: Office of Public School  
          Construction

           SOURCE  :     Author


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

           ANALYSIS  :    Existing law establishes the 10-member State  
          Allocation Board (SAB) and provides that members consist of  
          the Director of Finance, the Director of the Department of  
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          General Services (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.  Existing 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.  

          Existing law also establishes the Office of Public School  
          Construction (OPSC) within the DGS and 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.

          This bill:

          1. Requires the SAB, rather than the Director of DGS to  
             administer the School Facilities Program.

          2. Requires the transfer of the functions and staff of the  
             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:








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

                (2)      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.

             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.







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

           Comments
           
           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 SAB and its interaction with OPSC  
          and DGS.  In August 2007, the Commission issued its report,  
          which, among other things, made the following three  
          recommendations:

          1. The SAB 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/her designee serve as the statutory chair  
             of the SAB.

          2. The SAB should be an independent entity.  Staff and  
             functions of OPSC 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.

          3. 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. 

           What's the effect  ?  In its review, the Little Hoover  
          Commission opined that the SAB, while operating adequately,  







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          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.  

          The new structure proposed by this bill creates a  
          nine-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.

           Prior legislation

           This bill is very similar to SB 1552 (Margett), of 2008  
          which passed the Senate 4-0 and ultimately held under  
          submission by the Assembly Appropriations Committee.  

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

          According to the Senate Appropriations Committee:

                          Fiscal Impact (in thousands)

           Major Provisions                2009-10     2010-11     
           2011-12   Fund  

          Administration           $300      $600      $600 Bond*

          *Proposition 1D and other school facilities bonds


          DLW:do  5/29/09   Senate Floor Analyses 

                       SUPPORT/OPPOSITION:  NONE RECEIVED








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