BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1199
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          Date of Hearing:   January 11, 2012

                           ASSEMBLY COMMITTEE ON EDUCATION
                                Julia Brownley, Chair
                  AB 1199 (Brownley) - As Amended:  January 4, 2012
           
          SUBJECT  :   School bonds:  citizens' oversight committee

           SUMMARY  :   Extends the term for members of local bond citizens' 
          oversight committees from two consecutive two-year terms to 
          three consecutive two-year terms. 

           EXISTING LAW  :

          1)Authorizes, under Section 1 of Article XIII A of the 
            California Constitution, school districts, community college 
            districts, or county offices of education to pass a general 
            obligation bond by a 55% vote, provided that the local 
            initiative meet specified accountability measures.

          2)Requires the governing board of a school district or a 
            community college district to establish and appoint members to 
            an independent citizens' oversight committee within 60 days of 
            the date that the governing board enters the election results 
            on its minutes.  (Education Code Section (EC) 15278)  

          3)Provides that the citizens' oversight committee shall consist 
            of at least seven members to serve for a term of two years 
            without compensation and for no more than two consecutive 
            terms.  Specifies that the committee shall be comprised of the 
            following:

             a)   One member active in a business organization;
             b)   One member active in a senior citizens' organization;
             c)   One member active in a bona fide taxpayers' 
               organization;
             d)   For a school district, one member who is a parent or 
               guardian of a child enrolled in the district.  For a 
               community college district, a student who is both currently 
               enrolled in the district and active in a community college 
               group, such as student government; and, 
             e)   For a school district, one member who is both a parent 
               or guardian of a child enrolled in a district and active in 
               a parent-teacher organization, such as the Parent Teacher 
               Association or schoolsite council.  For a community college 








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               district, one member who is active in the support and 
               organization of a community college or the community 
               colleges of the district, such as a member of an advisory 
               council or foundation. (EC 15282)

          4)Specifies duties of the citizens' oversight committee to 
            include ensuring that bond revenues are expended only for 
            specified purposes and ensuring that no funds are used for any 
            teacher or administrative salaries or other school operating 
            expenses.  (EC 15278)

           FISCAL EFFECT  :   This bill is keyed non-fiscal.

           COMMENTS  :  Proposition 39 was passed by voters in 2000.  Among 
          others, the Proposition, a Constitutional Amendment, reduced the 
          voting threshold for the passage of local general obligations 
          bonds from two-thirds to 55% provided that the local bond 
          initiative meets the following accountability measures:

          1)The initiative identifies a list of the specific school 
            facilities projects that will be funded by bond proceeds; 

          2)A requirement that the school board, community college board, 
            or county office of education conduct an annual, independent 
            performance audit to "ensure that the funds have been expended 
            only on the specific projects listed;" and,

          3)A requirement that the school board, community college board, 
            or county office of education conduct an annual, independent 
            financial audit of the proceeds from the sale of the bonds 
            until all of those proceeds have been expended for the school 
            facilities projects.

          Both the financial audit and performance audit must be reviewed 
          by an independent citizens' oversight committee.  AB 1908 
          (Lempert), Chapter 44, Statutes of 2000, a companion bill to 
          Proposition 39, requires each district, within 60 days of the 
          passage of a local bond with 55% vote to appoint a citizens' 
          oversight committee to monitor and review expenditures to ensure 
          compliance with Proposition 39 requirements, and to keep the 
          public informed about bond expenditures.  The bill specified 
          that the oversight committee must be comprised of a minimum of 
          seven members, appointed for no more than two consecutive 
          two-year terms.  The bill also specifies that members shall not 
          be compensated and shall include representatives of business, 








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          senior citizen, taxpayers', parent teacher organizations, and 
          parents of children enrolled in the school district.

          Under existing law, the State Board of Education (SBE) is 
          authorized to waive certain sections of the EC or any 
          regulations adopted by the SBE (EC 33050).  Since 2006, the SBE 
          has granted 19 requests from school districts to waive the term 
          limit of members of local citizens' oversight committees to 
          allow existing members to serve an additional term.  The 
          predominant reasons for the requests stem from districts' 
          inability to find qualified individuals interested in serving on 
          the committees and the need for continuity.  This bill extends 
          the term of the appointments by one term to enable oversight 
          committee members to serve six years instead of four.  A local 
          governing board is not required to appoint individuals to three 
          terms, but this bill will alleviate the need for districts to 
          pursue waivers to reappoint existing members to an additional 
          term and reduce the workload at the SBE to process and approve 
          the waivers.  The author states, "School construction projects 
          can take five years or longer.  Enabling oversight committee 
          members the ability to oversee projects from beginning to end 
          enhances accountability of local dollars, as envisioned by the 
          authors of Proposition 39." 

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          Superintendent of Public Instruction Tom Torlakson

           Opposition 
           
          None on file
           
          Analysis Prepared by  :    Sophia Kwong Kim / ED. / (916) 319-2087