BILL ANALYSIS                                                                                                                                                                                                    �






                         SENATE COMMITTEE ON EDUCATION
                             Alan Lowenthal, Chair
                           2011-2012 Regular Session
                                        

          BILL NO:       SB 1062
          AUTHOR:        Liu
          INTRODUCED:    February 13, 2012
          FISCAL COMM:   Yes            HEARING DATE:  April 18, 2012
          URGENCY:       No             CONSULTANT:    Daniel Alvarez

           SUBJECT  :  California Community College Chancellor's Office.
          
           SUMMARY  

          This bill expands the existing authority of the Board of 
          Governors (BOG) of the California Community Colleges to 
          appoint persons without permanent civil service status to 
          vice chancellor and assistant vice chancellor positions, if 
          the individuals meet specified criteria.

           BACKGROUND  

          Current law requires the BOG of the California Community 
          Colleges to employ and fix the compensation, in accordance 
          with law, of assistants, clerical, and other employees as 
          it deems necessary for the effective conduct of the work of 
          the board and the chancellor's office. (Education Code � 
          71092)  Current law also authorizes the Governor, with the 
          recommendation of the BOG, to appoint up to a total of six 
          deputy and vice chancellors, who are exempt from state 
          civil service. (EC � 71090.5) 

          Current law outlines a comprehensive personnel system for 
          state civil service, encourages the development and 
          effective use in the civil service of well-qualified and 
          carefully selected executives, and, for this purpose, 
          establishes a category of civil service appointment called 
          a "career executive assignment," or CEA.  Until January 1, 
          2013, eligibility for appointment to a career executive 
          assignment includes: 1) persons with permanent status, or 
          who previously had permanent status, in the civil service;  
          (2) persons employed by the Legislature for two or more 
          consecutive years; and 3) persons holding, for two or more 
          consecutive years, nonelected exempt positions in the 
          executive branch. (Government Code � 19889.3)   After 




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          January 1, 2013, eligibility for CEA appointments is 
          reserved exclusively for persons with permanent civil 
          service status.

          The California Constitution requires the state to provide a 
          subvention of funds to reimburse costs to local 
          governments, including K-12 and community colleges, 
          whenever the Legislature, executive order, or a state 
          agency through adoption of regulations mandates a new 
          program or higher level of service, with specified 
          exceptions. (Section 6 of Article XIII B of the California 
          Constitution)
          At present, any BOG regulation that the Department of 
          Finance determines would create a state-mandated local 
          program cost, the BOG cannot adopt the regulation until the 
          Department of Finance (DOF) has certified to the BOG and 
          Legislature that a source of funds is available to 
          reimburse that cost. 
          (EC� 70901.5)
           
          ANALYSIS
           
          This bill expands the Board of Governors (BOG) of the 
          California Community Colleges to appoint persons without 
          permanent civil service status to vice chancellor and 
          assistant vice chancellor positions, if the individuals 
          meet specified criteria.  More specifically, this bill:

          1)   Authorizes the BOG to appoint persons without 
               permanent civil service status to vice chancellor or 
               assistant vice chancellor positions classified as 
               CEAs, if the individual meets any of the following:

               a)     Has a minimum of five years of work experience 
                 in any of the following:

                    i.          A local community college.
                    ii.         A higher education policy position.
                    iii.        A technical or occupational capacity 
                      for which there is a shortage of qualified 
                      workers.

               a)     Previously held permanent status in the civil 
                 service.

               b)     Was employed by the Legislature for two or more 




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                 consecutive years.

               c)     Held for two or more consecutive years one or 
                 more nonelected exempt positions in the executive 
                 branch.

          1)   Specifies the change above, does not limit the 
               application of any law applicable to CEAs, including 
               provisions of the Government Code and rules of the 
               State Personnel Board, except as to authorize 
               appointments as described above. 

          2)   Requires the BOG to identify that a source of funding 
               is available to reimburse the cost of any regulation 
               the Department of Finance determines would create a 
               state-mandated local program cost.

           STAFF COMMENTS  

           1)   Need for the bill  .  According to the author, this bill 
               provides (a) limited hiring flexibility for appointing 
               senior staff by expanding criteria for appointment of 
               vice chancellors or assistant vice chancellors to 
               include persons with a minimum amount of experience, 
               as specified, and (b) proposes an efficiency by 
               streamlining and expediting the regulatory process by 
               enabling the Board of Governors to identify the source 
               of funding for any regulation that the Department of 
               Finance may determine creates a mandated local 
               program. The proposed change in the appointment 
               process would give the Chancellor the ability to hire 
               his/her own staff and ensure each appointment 
               possesses the necessary expertise to address critical 
               community college issues in a timely manner. 

           2)   Opponents of this bill  disagree with the notion that 
               eligible civil service employees, including current 
               staff, are insufficient for employment as vice 
               chancellors.  The civil service process ensures an 
               ample pool of knowledge and qualified candidates who 
               are not only familiar with governmental operations but 
               also have private sector work experiences, as well as 
               former military service and local community college 
               administrative experiences. In addition, opponents 
               raise concerns that the Board of Governors would be 
               able to mandate programs without funding them. 




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           3)   Student Success Task Force  .  Chapter 409, Statutes of 
               2009 (SB 1143, Liu) directed the California Community 
               Colleges to establish a task force and develop a plan 
               to promote and improve student success by the 
               beginning of 2012.  The 20-member Student Success Task 
               Force composed of community college leaders, faculty, 
               students, researchers, staff and external 
               stakeholders, spent a full year researching, studying 
               and debating the best methods to improve student 
               outcomes.  Their plan resulted in 22 specific 
               recommendations which identify key strategies to 
               invest in student success and enable students to reach 
               their goals. These recommendations will be implemented 
               through Title 5 regulations, system-wide 
               administrative policies, local best practices, and 
               legislation.

           4)   Current process for hiring  .  Under current law, there 
               are two ways in which appointments to the executive 
               management team at the Chancellor's office can occur; 
               through a Governor's appointment, or through the 
               career executive assignment process.  In the past, 
               however, appointments from the Governor's office have 
               often taken months before a key appointment can be 
               approved.  As a state agency, the BOG also has the 
               authority to hire individuals who have, or had, 
               permanent civil service status, or former legislative 
               or nonelected, exempt executive employees into a CEA 
               position.  Current law, however, precludes the 
               appointment of individuals who may have significant 
               community college, higher education, or industry 
               related experience.

           5)   Who's affected within the Chancellor's Office  ?  This 
               bill expands the BOG authority to hire persons outside 
               the civil service into a position classified as a CEA. 
                According to the Chancellor's Office, nine vice 
               chancellor positions are currently eligible to be 
               filled by persons outside the civil service system.  
               Three of these are currently classified as CEA 
               positions.  Six positions are classified as exempt 
               positions.  The expanded authority would apply only to 
               those positions classified as CEAs.






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           6)   Mandate costs background  . In 1979 voters passed 
               Proposition 4, which added a requirement to the 
               California Constitution that local governments be 
               reimbursed for new programs or higher levels of 
               service the state imposes on them.  In November 2004, 
               state voters approved Proposition 1A, which requires 
               the Legislature to appropriate funds in the annual 
               budget to pay outstanding mandate claims, "suspend" 
               the mandate, or "repeal" the mandate. However, these 
               provisions apply to local governments only and - by 
               definition - do not include school districts or 
               community colleges.

               Currently, the state has about 50 K-14 education 
               mandates, with each mandate requiring school districts 
               and/or community colleges to perform as many as a 
               dozen specific activities. The 2011 Budget included 
               $90 million for these claims. The state went seven 
               consecutive years (2003-04 through 2009-10) making 
               only negligible mandate payments. As a result, a 
               backlog of unpaid K-14 claims has developed that now 
               totals an estimated $3.6 billion.  According to the 
               Senate Budget Committee, the state has a 
               constitutional obligation to pay off this backlog. 
               Moreover, in December 2008, a superior court found the 
               state's practice of deferring education mandate 
               payments unconstitutional and ordered the state to 
               fully fund mandated programs "in the future." While 
               constitutional separation of powers means the court 
               cannot force the Legislature to make appropriations 
               for past mandate costs, its decision increases 
               pressure on the state to pay its mandate obligations.

           7)   Related and prior legislation  .

               SB 1456 (Lowenthal), a measure implementing 
               recommendations from the SB 1143 Student Success Task 
               Force, requires among other things, any college or 
               district receiving specified funds to provide a strong 
               foundation and support services including orientation, 
               assessment and placement, counseling and education 
               planning, and academic interventions for students' 
               academic success and ability to achieve their 
               educational goals.

               SB 629 (Lowenthal, 2011) is very similar to SB 1062, 




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               but does not contain provisions related to 
               identification of a funding source for any regulations 
               the Department of Finance determines would create a 
               state-mandated local program cost.  This bill is 
               currently in the Assembly Higher Education Committee.

               AB 2109 (Ruskin, 2010) would have removed the 
               California Community Colleges (CCC) form the 
               definition of "state agency" for all legislation 
               enacted after January 1, 2011, and would have provided 
               the CCC Chancellor's Office with expanded personnel 
               hiring authority.  The hearing for AB 2109 was 
               cancelled at the author's request and the bill was 
               withdrawn from the Assembly Higher Education Committee 
               without further action. 

           SUPPORT  

          Association of California Community College Administrators
          Bay Area Council
          California Community Colleges Chancellor's Office (sponsor)
          Community College League of California
          Glendale Community College District
          Kern Community College District
          Long Beach Community College District
          Little Hoover Commission
          Los Angeles Area Chamber of Commerce
          Los Angeles Community College District
          Los Rios Community College District
          Orange County Business Council
          Pasadena Community College
          Peralta Community College District
          Regional Economic Association Leaders (R.E.A.L.) Coalition
          San Diego Community College District
          San Diego Regional Chamber of Commerce
          San Diego Regional Economic Development Corporation
          San Gabriel Valley Economic Partnership
          San Jose Silicon Valley Chamber of Commerce
          Santa Monica College
          State Center Community College District
          Yosemite Community College District
          West Kern Community College District

           OPPOSITION

           California Teachers Association




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          Gavilan College Faculty Association
          Service Employees International Union, Local 1000