BILL ANALYSIS                                                                                                                                                                                                    �



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          Date of Hearing:   June 27, 2012

                           ASSEMBLY COMMITTEE ON EDUCATION
                                Julia Brownley, Chair
                    SB 1271 (Corbett) - As Amended:  May 25, 2012

           SENATE VOTE  :   30-9
           
          SUBJECT  :   School facilities:  Field Act: seismic safety: 
          workgroup

           SUMMARY  :   Requires the Department of General Services (DGS) to 
          convene a workgroup to develop and adopt recommendations for 
          improving the oversight of school construction projects.  
          Specifically,  this bill  :   

          1)Makes declarations and findings regarding the number of 
            earthquakes in California and the deficiencies of the Division 
            of State Architects (DSA) in overseeing the construction of 
            school facility projects and ensuring that they meet seismic 
            safety requirements under the Field Act. 

          2)Requires the workgroup to review both of the following:

             a)   Changes made internal to the DSA to improve its 
               oversight of school construction projects since December 
               2011. The workgroup shall make any recommendations it 
               determines are necessary to further improve oversight, 
               process, training, and inspection activities under the 
               control of the DSA concerning school facility construction 
               and seismic, fire, and life safety; and, 

             b)   The Field Act, as it relates to occupancy of school 
               facilities, to consider what, if any, statutory changes 
               should be made to prohibit occupancy when and if 
               significant safety concerns are identified, and what, if 
               any, penalties the DSA should be able to levy against 
               school districts that do not provide all required 
               documents.

          3)Specifies that in convening the workgroup, the department 
            shall adapt or alter an existing advisory board or committee 
            or combine existing advisory boards or committees so that the 
            workgroup contains, but is not necessarily limited to, 
            representatives from all of the following:








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             a)   The DSA;
             b)   The Superintendent of Public Instruction;
             c)   The Seismic Safety Commission;
             d)   The State Fire Marshal;
             e)   School districts that represent the diverse size and 
               geography of California's school districts; 
             f)   The Office of the Chancellor of the California Community 
               Colleges; and, 
             g)   A community college district.

          4)Requires the DSA to report the recommendations of the 
            workgroup, including, but not limited to, any actions taken by 
            the DSA to modify its oversight of school construction 
            projects to the Senate Select Committee on Earthquake and 
            Disaster Preparedness, Response and Recovery by January 1, 
            2014, at a public hearing of the committee.  Requires the 
            Senate Select Committee on Earthquake and Disaster 
            Preparedness, Response and Recovery to provide an opportunity 
            for public comment before proposing statutory changes 
            recommended by the workgroup.

          5)Repeals the provisions of this bill on January 1, 2016, and as 
            of that date is repealed, unless a later enacted statute, that 
            is enacted before January 1, 2016, deletes or extends that 
            date.  

           EXISTING LAW  :  

          1)Requires, under the Leroy F. Greene School Facilities Act of 
            1998, the State Allocation Board to allocate to applicant 
            school districts, prescribed per-unhoused-pupil state funding 
            for construction and modernization of school facilities, 
            including hardship funding, and supplemental funding for site 
            development and acquisition.

          2)Requires the DSA, under the police power of the state, to 
            supervise the design and construction of any school building 
            or the reconstruction or alteration of or addition to any 
            school building to ensure that plans and specifications comply 
            with existing law and Title 24 regulations (the California 
            Building Standards Code).

          3)Requires public school buildings to meet pupil safety 
            performance standards pursuant to the Field Act.








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           FISCAL EFFECT  :  According to the Senate Appropriations 
          Committee, $70,000 - $100,000 in DGS staffing costs to complete 
          the reviews and recommendations.  The Committee also notes that 
          the workgroup recommendations are likely to result in cost 
          pressure to make changes to school safety related processes, and 
          to provide funding for seismic upgrades for existing schools and 
          more extensive (and expensive) requirements for future school 
          construction projects.  

           COMMENTS  :   Background  .  Since 1998, voters have approved $35.429 
          billion for the construction and rehabilitation of K-12 school 
          facilities through Propositions 1A (1998), 47 (2002), 55 (2004), 
          and 1D (2006).  In order to be eligible for state education bond 
          funds, the School Facility Program requires a local educational 
          agency to receive approval from the California Department of 
          Education (CDE), to ensure that the selected site and school 
          specifications are safe and meet the school's education plan, 
          and the DSA, to ensure that the architectural design plans meet 
          fire, life and safety requirements; Field Act requirements; and 
          access requirements under the Americans with Disability Act.  
          The Field Act, named after the author of the bill establishing 
          the Act, Assemblymember C. Don Field, was enacted in 1933 after 
          an earthquake in Long Beach.  The Act authorized the State 
          Architect to develop a statewide building code to make all 
          buildings, especially school buildings, safe from earthquakes.  
          The Act has been strengthened since then and California's public 
          schools are commonly considered to be the safest public 
          buildings in the state.  

          When DSA determines that the project plans comply with all the 
          necessary building codes and the Field Act, the school district 
          may proceed to construction of the project.
           
          Project closeout  .  When construction is completed and no later 
          than six months after the building is occupied, DSA initiates 
          the project closeout phase to determine if the project has 
          complied with all school construction codes and regulations.  
          Project closeout consists of examination of specific project 
          files for documents required to be submitted before, during and 
          after construction and to determine if outstanding issues have 
          been resolved.  Upon conclusion of the review, the project file 
          is closed either with or without certification.

           Closure with certification  :  The DSA grants a "Final 








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          Certification of Construction" when the following has occurred:

             1)   All construction is completed and verified;

             2)   All required documentation is received and verified by 
               the DSA; and,

             3)   The required fee, adjusted for final construction costs 
               (including change orders), is received by the DSA.

           Closure without certification  :  The DSA closes out the project 
          without issuing the "Final Certification of Construction" due to 
          the following:

             1)   Required fees were not paid;

             2)   The project's documentation is incomplete; and, 

             3)   The DSA's inspection discovers problems with the 
               construction that are not adequately addressed.
              
           This bill  requires the DGS, which oversees the DSA, to convene a 
          workgroup to develop and adopt recommendations for improving the 
          oversight of school construction projects.  Specifically, the 
          workgroup is required to review the following:

          1)Changes made internally to improve DSA's oversight of school 
            construction projects since December 2011.  The workgroup is 
            also required to make recommendations it determines are 
            necessary to further improve oversight, process, training, and 
            inspection activities under the control of the DSA.

          2)The Field Act, as it relates to occupancy of school 
            facilities, to consider what, if any, statutory changes should 
            be made to prohibit occupancy when and if significant safety 
            concerns are identified, and what, if any, penalties the DSA 
            should be able to levy against school district that do not 
            provide all required documents.

          The DSA has been the subject of stakeholder, legislative and 
          media criticisms over the last few years.  Concerns have been 
          expressed that the process for review is lengthy and that the 
          four regional offices do not have consistent policies.  The 
          problems with the DSA were exacerbated by media stories 
          highlighting the large number of projects that have not been 








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          certified and the suggestion that some school buildings are 
          unsafe.  

           Audit  .  In 2011, the Legislature requested the Bureau of State 
          Audit (BSA) to conduct an audit of the DSA.  The BSA issued its 
          first report in December 2011 and the second report in May 2012. 
           Some of the findings include:

          1)While the DSA must certify school construction projects when 
            they comply with the act, as of December 2010 approximately 
            16,400 projects statewide remained uncertified.
          2)Statewide, 23% of projects closed in the last three fiscal 
            years remain uncertified.
          3)The DSA inconsistently used its authority to order districts 
            to stop work on projects after identifying a potential threat 
            to public safety.
          4)The DSA did not effectively document its determinations about 
            the risk level of uncertified projects or to use these 
            determinations to guide its approach to following up on those 
            projects.
          5)The DSA's level of oversight of school construction processes 
            is not comprehensive-of 24 projects reviewed, three did not 
            have evidence of any site visits by its field engineers and 
            eight had evidence of only one site visit.
          6)Although districts must submit inspectors for approval prior 
            to construction, for 22 of 34 projects reviewed, the DSA did 
            not approve the inspectors until after construction began.
          7)The DSA does not provide the same level of construction 
            oversight for fire and life safety and accessibility as it 
            does for structural safety even though it reviews plans for 
            all three disciplines.

          The BSA made a number of recommendations to address the 
          findings.  The DSA is required to submit status reports at 60 
          days, six months and one year intervals to the BSA indicating 
          whether and how it has responded to the BSA's recommendations.  
          The DSA reports that the 16,400 projects that were closed 
          without certification have been reviewed and that there are now 
          50 projects remaining with "potential" life/safety issues.  Some 
          of the responses in DSA's six month report to the BSA include 
          the following:

          1)Notification letters were sent to districts with uncertified 
            projects on June 1st, reminding them of the projects that are 
            uncertified and informing them of the missing items (e.g., 








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            documents, test results, fees) required to certify the 
            projects.  
          2)The DSA is exploring implementation of an "inspection card" 
            system similar to a process used by local governments that 
            will require each element of construction to be reviewed and 
            certified by the project inspector with all relevant special 
            inspections documented prior to being granted permission to 
            proceed with the next step of construction.  
          3)The DSA has modified its practices regarding use of Orders to 
            Comply and Stop Work Orders to ensure consistent use among DSA 
            regional offices.  
          4)Regarding inspections, the DSA indicates that it is finalizing 
            a policy which requires all Project Class 1(non-wood) and 2 
            (wood) projects be regularly visited by its field engineers, 
            which will include a face-to-face meeting with project 
            inspectors.  All new construction projects will have at least 
            one documented visit by a field engineer with an overall 
            objective that ongoing projects be visited at four to six week 
            intervals.    
          5)Regarding qualification of inspectors, the DSA's Certification 
            Unit has updated its written policies for inspector 
            certification to strengthen its processes not excusing 
            inspectors from required training and improve its internal 
            identification of expired exam scores.  

           Composition of the workgroup  .  The bill requires the DGS to 
          adapt or alter an existing advisory board or committee or 
          combine existing advisory boards or committees so that the 
          workgroup contains, but is not necessarily limited to, 
          representatives from the list identified in the fourth paragraph 
          in the summary section of the analysis.  The DSA, under the 
          California Building Standards Administrative Code, already has 
          the authority to appoint advisory bodies.  Given all the 
          controversies and the spotlight the DSA has been in, the new 
          State Architect, Chet Widom, appointed by Governor Brown in 
          December 2011, has convened the following three committees to 
          focus on and develop improvements to the processes and the 
          enforcement of the Field Act; fire, life, and safety; and 
          accessibility:  1) Code and Standards; 2) Inspecting and 
          Testing; and 3) Project Delivery.

          Based on information provided by the DGS, it appears that the 
          membership of the committees include all the representatives 
          specified in the bill with the exception of a representative 
          from the Office of the Chancellor of the California Community 








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          Colleges.  The State Architect's intention is to have the 
          committees complete their work by August and begin 
          implementation of the committees' recommendations by December, 
          2012.  

           Reporting  .  This bill requires the DSA to report the 
          recommendations of the workgroup, including, but not limited to, 
          any actions taken by the DSA to modify its oversight of school 
          construction projects to the Senate Select Committee on 
          Earthquake and Disaster Preparedness, Response and Recovery by 
          January 1, 2014, at a public hearing of the committee.  The bill 
          further requires the Select Committee to provide an opportunity 
          for public comment before proposing statutory changes 
          recommended by the workgroup.  While the Senate Select Committee 
          is a natural fit to hear and deliberate the findings and 
          recommendations of the workgroup, Senate and Assembly policy 
          committees including the Education Committees are also 
          appropriate bodies to review the recommendations.  Staff 
          recommends requiring a report to also be submitted to 
          appropriate Senate and Assembly policy committees.  

           Findings and declarations  .  Staff recommends revising the 
          findings and declarations section to more appropriately 
          attribute the findings to the BSA audit.  
           
          Technical amendment  .  Staff recommends changing the reference to 
          "department", on page 3, line 34, which, in the Education Code, 
          means the CDE, to the "Department of General Services".  

          The bill sunsets on January 1, 2016 even though the DSA is 
          required to report to the Select Committee by January 1, 2014.  
          Staff recommends changing the sunset to January 1, 2015.  
           
          Is this bill necessary ?  Given that the State Architect has 
          already established advisory committees; the BSA has released 
          two reports with recommendations and the DSA is responding to 
          those recommendations; and the Senate Select Committee, chaired 
          by the author of this bill, or the Senate and Assembly Education 
          Committees can hold hearings without the enactment of a bill, 
          the Committee may wish to consider whether this bill is 
          necessary.  

           Arguments in support  .  The California Community College League 
          of California states, "The Field Act is highly-regulated and 
          rigid, while construction materials and processes continually 








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          change.  Some of these changes may be functionally and fiscally 
          more efficient and appropriate than current methods and 
          standards.  SB 1271 will allow the best possible regulations and 
          standards to be upgraded and put into place."

          The Coalition for Adequate School Housing (C.A.S.H.) has a 
          support if amended position on the bill and expresses concerns 
          with the bill's requirement that the workgroup review occupancy 
          provisions within the Field Act.  C.A.S.H. states that it is 
          "opposed to any penalty that would deny beneficial occupancy of 
          a school at construction completion prior to receipt of 
          certification:  the extensive, complicated, and expensive nature 
          of school project site and plan approval borne at the local 
          level, the continuous and robust nature of the oversight and 
          inspection during the construction process at the local level, 
          and the final responsibility and ultimate liability of the 
          school district for the project in total dictates that the full 
          authority for occupancy must continue to reside with the school 
          district, not a state agency."  C.A.S.H. also requests the 
          addition of a structural engineer and a school architect on the 
          workgroup.  

           Prior related bill  .  AB 1099 (Fuller) of 2009, would have 
          eliminated specified requirements to closeout a school facility 
          project with the DSA.  The bill was held by the author in the 
          Senate.  

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          American Construction Inspectors Association
          American Federation of State, County and Municipal Employees, 
          AFL-CIO
          California Coalition of Professional Construction Inspectors
          California Teamsters Public Affairs Council
          Coalition for Adequate School Housing (if amended)
          Community College League of California
           
            Opposition 
           
          None on file

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









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