BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de Le�n, Chair


          AB 2721 (Pan) - California State University Trustees: Nonfaculty  
          Member
          
          Amended: July 2, 2014           Policy Vote: Education 4-0
          Urgency: No                     Mandate: No
          Hearing Date: August 14, 2014                                
          Consultant: Jacqueline Wong-Hernandez                       
          
          SUSPENSE FILE.  AS PROPOSED TO BE AMENDED.
          

          Bill Summary: This bill expands the membership of the California  
          State University (CSU) Board of Trustees by requiring the  
          Governor to appoint to the Board, a permanent nonfaculty  
          employee, as specified.

          Fiscal Impact (as approved on August 14, 2014): 
                 Selection: Potentially significant workload to the CSU  
               to create an independent systemwide staff council to  
               nominate employees for the Board of Trustees; potentially  
               significant costs to the employee organizations of  
               permanent nonfaculty employees of CSU to fund the council.

          Background: Existing law establishes the CSU Board of Trustees,  
          comprised of 25 members, as follows:

             1)   Five (5) ex-officio members: (a) the Governor, (b) the  
               Lieutenant Governor, (c) Speaker of the Assembly, (d) the  
               Superintendent of Public Instruction, and (e) the  
               Chancellor of the CSU.

             2)   Sixteen (16) Governor appointees confirmed by two-thirds  
               of the Senate, each serving an eight-year term.

             3)   One (1) alumni association representative, who cannot be  
               an employee of the CSU, appointed by the Governor serving a  
               two-year term.

             4)   One (1) tenured CSU faculty representative appointed by  
               the Governor, for a two-year term, from a list of names of  
               at least two persons furnished by the CSU Academic Senate  
               to serve a two-year term which commences on July 1 and  








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               expires on June 30 two years thereafter.

             5)   Two (2) CSU students appointed by the Governor for  
               staggered two-year terms from a list of nominees furnished  
               by the governing board of any statewide  student  
               organization that represents CSU students and the student  
               body organizations of the CSU campuses. 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.  
               Only one student is eligible to vote at any time.

          Proposed Law: This bill expands the membership of the CSU Board  
          of Trustees to 26 members. Specifically, this bill:
          
          1)   Requires the Governor to appoint a permanent nonfaculty  
               employee, who is not in a management personnel plan, a  
               confidential classification, or an excluded classification  
               to serve a two-year term. 
               
          2)   Requires the Governor to appoint the nonfaculty employee  
               from a list of at least two nominees provided by a  
               systemwide staff council.

          3)        Requires that the employee organizations fund the  
          council established by the 
               bill's provisions. 

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

          5)       Requires that the term of office for the nonfaculty  
          member begin July 1 and expire
                    June 30 two years thereafter.
          
          Related Legislation: SB 1515 (Yee, 2012) would have changed the  
          CSU Board of Trustees composition, increasing the number of  
          faculty, students and represented staff. That bill was held  
          under submission in this Committee. 









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          AB 2849 (Lowenthal, 2004) would have added one nonfaculty member  
          of CSU. That bill was vetoed by Governor Schwarzenegger.
          
          Staff Comments: When a faculty member of a particular CSU campus  
          serves a two-year term on the CSU Board of Trustees, the CSU  
          "buys out" that faculty member's salary. The campus can then  
          staff appropriately to provide courses that would have otherwise  
          been taught by that faculty member. Presumably, the CSU would  
          likewise buy out the salary of a permanent nonfaculty employee  
          serving on the Board of Trustees, since the campus will need to  
          replace the employee for the duration of his or her term.  
          Because employees in a wide range of positions (e.g. financial  
          aid officer, librarian, custodial staff) with a wide range of  
          salaries could serve as the nonfaculty member, the estimated  
          annual cost is unknown. The cost would be driven by the  
          employment cost of the appointed member.

          Author's Amendments limit compensation for the nonfaculty member  
          to travel expenses and per die reimbursement.