BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 1062
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          Date of Hearing:   June 19, 2012

                       ASSEMBLY COMMITTEE ON HIGHER EDUCATION
                                 Marty Block, Chair
                       SB 1062 (Liu) - As Amended:  May 8, 2012

           SENATE VOTE  :   33-1
           
          SUBJECT  :   California Community Colleges:  board of governors.

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


          1)Authorizes the BOG to appoint persons without permanent civil 
            service status to vice chancellor and assistant vice 
            chancellor positions, 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 CCC,

               ii)    A higher education policy position, or,

               iii)   A technical or occupational capacity for which there 
                 is a shortage of qualified workers.

             b)   Previously held permanent status in the civil service;

             c)   Was employed by the Legislature for two or more 
               consecutive years; or,

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

          2)Specifies the changes above, do not limit the application of 
            any law applicable to career executive assignments, including 
            provisions of the Government Code and rules of the State 
            Personnel Board, except as to authorize appointments as 
            described above.








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           EXISTING LAW  :

          1)Requires the CCC BOG 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)  

          2)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) 

          3)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" (CEA).  Until January 1, 2013, eligibility for 
            appointment to a CEA 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 January 
            1, 2013, eligibility for CEA appointments is reserved 
            exclusively for persons with permanent civil service.

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

           COMMENTS  :    Background  .  Under current law, appointments to the 
          CCC Chancellor's executive management team are made by a 
          gubernatorial appointment or through the CEA process.  However, 
          in past years, key appointments from the Governor's office have 
          often taken months before being approved.  As a state agency, 
          the BOG also has the authority to hire individuals who have, or 
          had, permanent civil service status, or former or nonelected, 
          exempt executive employees into a CEA position.  

           Need for this bill  .  Current law precludes the appointment of 
          individuals who may have significant CCC, higher education, or 
          industry-related experience.  According to the author, the 
          Chancellor needs the flexibility to hire the most qualified 
          individuals he or she can to fill leadership positions in the 








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          Chancellor's office.  Currently, the Chancellor is limited to 
          hiring from civil, legislative, or non-elected executive service 
          or to going through the Governor's appointment process, which 
          can be lengthy, time consuming, and sometimes fruitless.  The 
          delay has resulted in the loss of qualified candidates and 
          prolonged vacancies in key positions. 

           Student success recommendations  .  At the direction of the 
          Legislature �SB 1143 (Liu), Chapter 409, Statutes of 2010], the 
          Chancellor established a task force to develop recommendations 
          by early 2012 to promote and improve student success.  The 
          20-member the Student Success Task Force (SSTF) included CCC 
          leaders, faculty, students, researchers, staff, and external 
          stakeholders and spent a fully year researching, studying, and 
          debating the best methods to improve student outcomes.  Their 
          plan resulted in 22 recommendations that identify key strategies 
          to invest in student success and enable students to reach their 
          goals, including the recommendation for a stronger Chancellor's 
          office to improve sharing of data, common goal setting, and 
          fidelity to statewide efforts to improve student outcomes.  

          The Little Hoover Commission in it February 2012 report 
          recommended that the state strengthen the governance of the CCC 
          by creating a stronger, more independent Chancellor's office 
          that is empowered to establish policy directives, create 
          accountability metrics, and hire senior-level staff.  


           Who is affected  ?  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, 11 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.  Eight positions are classified as 
          exempt positions.  The expanded authority would apply only to 
          those positions classified as CEAs.

           Arguments in support  .  According to the Community College League 
          of California, "SB 1062 gives the State Chancellor the authority 
          that he/she needs to recruit and hire educational professionals 
          in a manner equal to those at CSU, UC and other higher education 
          entities.  The current provisions requiring gubernatorial 
          approval have delayed appointments for as long as 18 months.  
          These delays have caused excellent qualified candidates to seek 
          and obtain other employment opportunities."








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           Arguments in opposition  .  The California Labor Federation argues 
          that adding the three prior experience options "?would set a 
          precedent unlike any other in California government and conflict 
          with the well-established system in place for appointing CEAs.  
          The civil service process ensures an ample pool of knowledgeable 
          and qualified candidates who are not only familiar with 
          governmental operations, but also have private sector work 
          experience, as well as former military service and local 
          community college administrative history."

           Prior legislation  .  SB 1456 (Lowenthal), to be heard by this 
          Committee on June 19, would implement two recommendations from 
          the SSTF.  SB 629 (Lowenthal) of 2011, which passed the Senate 
          but has not been set for hearing in this Committee, is very 
          similar to SB 1062.  AB 2109 (Ruskin) of 2010, which was 
          withdrawn from this Committee without further action, would have 
          removed the CCC from 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.  

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          Association of California Community College Administrators
          Bay Area Council
          Board of Governors of the California Community Colleges
          College of the Canyons, Santa Clarita
          Community College League of California
          Glendale Community College District
          Inland Empire Economic Partnership
          Kern Community College District
          Little Hoover Commission
          Long Beach Community College District
          Los Angeles Area Chamber of Commerce
          Los Angeles Community College District
          Los Rios Community College District
          North Bay Leadership Council
          Peralta Community College District
          Orange County Business Council
          Regional Economic Association Leaders Coalition
          San Diego Community College District
          San Diego Regional Chamber of Commerce








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          San Diego Regional Economic Development Corporation
          San Gabriel Valley Economic Partnership
          San Jose Silicon Valley Chamber of Commerce
          Shasta-Tehama-Trinity Joint Community College District

          State Center Community College District
          Yosemite Community College District
          West Kern Community College District
           
            Opposition 
           
          California Correctional Peace Officers Association
          California Labor Federation
          California Teachers Association's Community College Association
          Service Employees International Union Local 1000

           Analysis Prepared by  :    Sandra Fried / HIGHER ED. / (916) 
          319-3960