BILL ANALYSIS                                                                                                                                                                                                    �



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        CONCURRENCE IN SENATE AMENDMENTS
        AB 1199 (Brownley)
        As Amended  May 25, 2012
        Majority vote
         
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        |ASSEMBLY:  |67-0 |(January 17,    |SENATE: |36-0 |(June 18,      |
        |           |     |2012)           |        |     |2012)          |
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         Original Committee Reference:    ED.

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

         The Senate amendments  specify that the members of the local bond 
        citizens' oversight committees shall serve for a minimum term of two 
        years.  

         EXISTING LAW  :

        1)Authorizes, under Section 1 of Article XIIIA 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 (EC) Section 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;









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           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 
             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 Section 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 
          Section 15278)

         AS PASSED BY THE ASSEMBLY  , this bill was substantially similar to 
        the version passed by the Senate. 

         FISCAL EFFECT  :  Unknown.  This bill is keyed non-fiscal by the 
        Legislative Counsel.

         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."

        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 








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          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, 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 Section 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.  However, a local governing board is not required to appoint 
        individuals to three terms.  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." 

         
        Analysis Prepared by  :    Sophia Kwong Kim / ED. / (916) 319-2087 

                                                                FN:  0004072 












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