BILL ANALYSIS                                                                                                                                                                                                    �



                                                                 AB 2721
                                                                 Page  1


         ASSEMBLY THIRD READING
         AB 2721 (Pan)
         As Amended  April 8, 2014
         Majority vote 

          HIGHER EDUCATION    13-0        APPROPRIATIONS      17-0        
          
          ----------------------------------------------------------------- 
         |Ayes:|Williams, Ch�vez, Bloom,  |Ayes:|Gatto, Bigelow,           |
         |     |Fong, Fox, Jones-Sawyer,  |     |Bocanegra, Bradford, Ian  |
         |     |Levine, Achadjian,        |     |Calderon, Campos,         |
         |     |Medina, Olsen,            |     |Donnelly, Eggman, Gomez,  |
         |     |Quirk-Silva, Weber, Wilk  |     |Holden, Jones, Linder,    |
         |     |                          |     |Pan, Quirk,               |
         |     |                          |     |Ridley-Thomas, Wagner,    |
         |     |                          |     |Weber                     |
         |-----+--------------------------+-----+--------------------------|
         |     |                          |     |                          |
          ----------------------------------------------------------------- 
          SUMMARY  :  Adds a nonfaculty employee to the California State  
         University (CSU) Board of Trustees (BOT).  Specifically,  this  
         bill  :  

         1)Adds to the CSU BOT a nonfaculty employee of the CSU covered by  
           the Higher Education Employer-Employee Relations Act (HEERA),  
           appointed by the Governor to serve a two-year term.

         2)Requires a nonfaculty employee committee consisting of one  
           representative from each of the employee organizations to  
           provide the Governor a list of at least two nominees for the  
           appointment, with all nominees having received a majority vote  
           of the representatives of the committee.

         3)Requires the employee organizations of nonfaculty employees to  
           fund the aforementioned selection committee. 

         4)Prohibits the nonfaculty employee BOT member from participating  
           on any subcommittee of the board responsible for collective  
           bargaining negotiations.

         5)Provides that the term of office for the nonfaculty employee  
           shall commence on July 1 and shall expire on June 30 two years  
           thereafter.









                                                                 AB 2721
                                                                 Page  2


          EXISTING LAW  establishes the CSU to be administered by the BOT,  
         which consists of:

         1)Five ex officio members:  the Governor, Lieutenant Governor,  
           Speaker of the Assembly, State Superintendent of Public  
           Instruction, and the Chancellor; 

         2)An Alumni Trustee appointed by the CSU Statewide Alumni Council  
           to serve for a two-year term, which expires at the end of the  
           two years;

         3)A Faculty Trustee appointed by the Governor from a list of  
           nominees proposed by the Statewide Academic Senate to serve a  
           two-year term which commences on July 1 and expires on June 30  
           two years thereafter; 

         4)Two student trustees appointed by the Governor from a list of  
           nominees proposed by the California State Student Association.   
           These student trustees serve staggered two-year terms. One has  
           full voting powers; the second, non-voting student trustee  
           succeeds to the voting position upon the expiration of the term  
           of the first.  The terms commence on July 1, every other year,  
           and expire on June 30 two years thereafter;

         5)Sixteen remaining trustees are appointed by the Governor,  
           confirmed by two-thirds of the California State Senate, and  
           serve eight year terms.  Trustees confirmed by the senate remain  
           on the board until a replacement is named or 60 days after their  
           term expires whichever comes first. 

          FISCAL EFFECT  :  According to the Assembly Appropriations  
         Committee, travel and per diem costs for the trustee to attend BOT  
         meetings six times a year in Long Beach, as well as a number of  
         unknown other events such as attending commencements,  
         inaugurations, presidential searches and other meetings and campus  
         events would depend to some extent on where the new trustee  
         resides, but could be up to $20,000 annually.  There would be  
         additional costs to the extent CSU buys out all or a portion of  
         the represented staff member's time related to fulfilling their  
         trustee responsibilities. 

          COMMENTS  :  

         Purpose of this bill.  According to the author, "Every segment of  








                                                                 AB 2721
                                                                 Page  3


         the university has a voice on the BOT:  faculty, administration,  
         students - even alumni - but not classified employees.  Classified  
         employees help keep CSU campuses operating; ensuring campuses are  
         clean and safe; provide classroom, financial aid and other support  
         services; and provide a supportive learning environment."  The  
         author argues this bill will ensure a voice on the BOT to  
         "represent over 20,000 employees at 23 CSU campuses and the Office  
         of the Chancellor." 

         Union representation.  Collective bargaining creates a process for  
         employees to negotiate with management; in the CSU, the BOT  
         approves contracts.  By placing a nonfaculty member selected from  
         a list furnished by classified employee unions this bill may  
         create a possible conflict of interest.  As the author notes, the  
         CSU BOT currently includes a tenured faculty member.  However, it  
         should be noted that the Governor's appointment of the faculty BOT  
         member is from a list furnished by the Academic Senate of the CSU,  
         and not the union that represents faculty at the bargaining table.  


         Precedent for direct union representation.  SB 644 (Burton),  
         Chapters 860 Statutes of 2003 designated one of the 13  
         gubernatorial appointments to the California Community Colleges  
         Board of Trustees as a classified employee, with the appointment  
         made from a list of at least three persons furnished by the  
         exclusive representatives of classified employees of the CCC.   

         Prior legislation.  SB 1515 (Yee) of 2012, would have provided for  
         several changes to the composition of the BOT, including requiring  
         representation from a nonfaculty employee.  SB 1515 was held in  
         the Senate Appropriations Committee.  AB 2849 (Lowenthal) of 2004.  
         would have added one nonfaculty member of CSU.  AB 2849 was vetoed  
         by Governor Schwarzenegger.  AB 307 (Pavley) of 2001, and SB 1604  
         (O'Connell) of 2000, were identical to this bill.  AB 307 was  
         subsequently amended to address a different subject matter.  SB  
         1604 was approved by the Legislature but subsequently withdrawn  
         from enrollment and held at the Senate Desk.
          

         Analysis Prepared by  :    Laura Metune / HIGHER ED. / (916)  
         319-3960                                               FN: 0003614











                                                                 AB 2721
                                                                 Page  4