Existing law authorizes the adoption of a proposition for indebtedness in the form of general obligation bonds incurred by specified educational entities for the construction, reconstruction, rehabilitation, or replacement of school facilities, including the furnishing and equipping of school facilities, or the acquisition or lease of real property for school facilities upon the approval of 55% of the voters, if the proposition includes specified accountability requirements. Existing law requires, if a bond measure of that kind is approved, the governing board of the school district or community college district to establish and appoint members to an independent citizens oversight committee for the purpose of informing the public on the expenditure of the bond revenues. Existing law requires that the citizens oversight committee consist of at least 7 members, and requires a member to serve for a minimum term of 2 years and for no more than 3 consecutive terms.

This bill would instead require a member of the citizens oversight committee to serve on the committee for no less than one 2-year term and for no more than 6 consecutive 2-year terms.

Existing law authorizes the adoption of a proposition for indebtedness in the form of general obligation bonds incurred by specified educational entities for the construction, reconstruction, rehabilitation, or replacement of school facilities, including the furnishing and equipping of school facilities, or the acquisition or lease of real property for school facilities upon the approval of 55% of the voters, if the proposition includes specified accountability requirements. Existing law requires, if a bond measure of that kind is approved, the governing board of the school district or community college district to establish and appoint members to an independent citizens oversight committee for the purpose of informing the public on the expenditure of the bond revenues. Existing law requires that the citizens oversight committee consist of at least 7 members, and requires a member to serve for a minimum term of 2 years and for no more than 3 consecutive terms.

This bill would instead require a member of the citizens oversight committee to serve on the committee for no less than one 2-year term and for no more than 6 consecutive 2-year terms.

Existing law authorizes the adoption of a proposition for indebtedness in the form of general obligation bonds incurred by specified educational entities for the construction, reconstruction, rehabilitation, or replacement of school facilities, including the furnishing and equipping of school facilities, or the acquisition or lease of real property for school facilities upon the approval of 55% of the voters, if the proposition includes specified accountability requirements. Existing law requires, if a bond measure of that kind is approved, the governing board of the school district or community college district to establish and appoint members to an independent citizens oversight committee for the purpose of informing the public on the expenditure of the bond revenues. Existing law requires that the citizens oversight committee consist of at least 7 members, and requires a member to serve for a minimum term of 2 years and for no more than 3 consecutive terms.

This bill would instead require a member of the citizens oversight committee to serve on the committee for no less than one 2-year term and for no more than 6 consecutive 2-year terms.

 VETO  

Bill No: SB 341

Author:

:

Vote: 7

SENATE EDUCATION COMMITTEE: 7-0, 3/22/17

AYES: Allen, Wilk, Galgiani, Leyva, Mendoza, Pan, Vidak

SENATE FLOOR: 37-0, 3/30/17 (Consent)

AYES: Allen, Anderson, Atkins, Bates, Bradford, Cannella, Dodd, Fuller, Gaines, Galgiani, Glazer, Hernandez, Hertzberg, Hill, Hueso, Jackson, Lara, Leyva, McGuire, Mendoza, Mitchell, Monning, Moorlach, Morrell, Newman, Nguyen, Nielsen, Pan, Portantino, Roth, Skinner, Stern, Stone, Vidak, Wieckowski, Wiener, Wilk

NO VOTE RECORDED: Beall, Berryhill, De León

ASSEMBLY FLOOR: 74-0, 6/29/17 (Consent) - See last page for vote

SUBJECT:

SOURCE: California League of Bond Oversight Committees

DIGEST:

This bill doubles the number of terms that a member of a local bond Citizens’ Oversight Committee (COC) may serve from three to six consecutive terms.

ANALYSIS:

Existing law:

1. Authorizes a school district, community college district, or county office of education to incur bond indebtedness for the construction, reconstruction, rehabilitation, or replacement of school facilities, with the approval of 55 percent of the voters of the district or county. (Article XI, Section 18 of the California Constitution, also referred to as Proposition 39)
2. Provides that this vote threshold only applies if, among other things, constitutionally specified accountability requirements are met. These include requirements that the local bond measure includes a specific list of school projects to be funded and that the authorizing board conduct annual, independent financial and performance audits until all bond funds have been spent to ensure they are used exclusively for the projects listed in the measure. (Article XIII A of the California Constitution)
3. Provides that if a bond measure is authorized under the constitutional provisions established by Proposition 39, the governing board of the school or community college district must establish and appoint members to a COC within 60 days of entering the election results on its minutes. Among other things, the purpose of the COC is to review and report on bond fund expenditures to ensure a district’s compliance with the purposes and accountability requirements outlined in the California Constitution as the result of the passage of Proposition 39. (Education Code § 15278)
4. Provides that the COC consist of at least seven members to serve a term of two years for no more than three consecutive terms, and specifies the make-up of the COC, including the requirements that one member shall be active in a business organization representing the business community located within the district and that one member shall be active in a bona fide taxpayers’ organization. (EC § 15282)

This bill:

1. Provides that members of the COC must serve a minimum term of two years.
2. Increases the number of consecutive terms that COC members may serve from two to three two-year terms, thereby authorizing members to serve for a total of six, rather than four years.
3. Provides that the COC is to consist of seven members, rather than at least seven members.
4. Makes several technical and clarifying changes.

Comments

Waivers. Existing law provides the ability for the State Board of Education (SBE) to waive certain sections of the Education Code or regulations that are adopted by the SBE. In the past, the SBE has received numerous requests from school districts to waive the term limit of members serving on local COCs to allow them to serve additional terms. This is mainly attributed to the districts’ inability to find qualified individuals interested in serving on the COCs and the need for continuity. While the number of waiver requests that the SBE has received in recent years is unknown, this bill could alleviate the need for school districts to pursue waivers and also reduce the associated workload at the SBE to process and approve such waivers.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

SUPPORT: (Verified 7/19/17)

California League of Bond Oversight Committees (source)

Howard Jarvis Taxpayers Association

OPPOSITION: (Verified 7/19/17)

None received

GOVERNOR'S VETO MESSAGE:

I am returning Senate Bill 341 without my signature.

This bill would increase the number of consecutive terms that a member of a bond citizens' oversight committee may serve, from three two-year terms to six two-year terms.

This bill is a statewide solution to a limited problem. Although a few school districts cite difficulty recruiting community members to serve on their bond oversight committee, this bill could create fewer opportunities for community involvement statewide. This is contrary to the goal of the bond oversight committee, which is to ensure that taxpayers have the opportunity to provide proper oversight of these funds.

ASSEMBLY FLOOR: 74-0, 6/29/17

AYES: Acosta, Aguiar-Curry, Travis Allen, Arambula, Baker, Berman, Bigelow, Bloom, Bocanegra, Bonta, Burke, Caballero, Cervantes, Chau, Chávez, Chen, Chiu, Choi, Chu, Cooley, Cooper, Cunningham, Dababneh, Dahle, Daly, Eggman, Flora, Frazier, Friedman, Gallagher, Cristina Garcia, Eduardo Garcia, Gipson, Gloria, Gomez, Gonzalez Fletcher, Grayson, Harper, Holden, Irwin, Jones-Sawyer, Kalra, Kiley, Lackey, Levine, Limón, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Muratsuchi, Nazarian, Obernolte, O'Donnell, Patterson, Quirk, Quirk-Silva, Reyes, Ridley-Thomas, Rodriguez, Rubio, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Voepel, Waldron, Rendon

NO VOTE RECORDED: Brough, Calderon, Fong, Gray, Weber, Wood

Prepared by:

1/2/18 10:09:51

**** END ****

Date of Hearing: June 21, 2017

ASSEMBLY COMMITTEE ON EDUCATION

Patrick O'Donnell, Chair

SBPCA Bill Id:SB 341

Author:(Wilk) – As Amended Ver:March 23, 2017

SENATE VOTE: 37-0

SUBJECT: School bonds: citizens’ oversight committee: member terms

SUMMARY: Extends the term of members on a school district’s citizens’ oversight committee (COC) from a maximum of three consecutive two-year terms (six years) to six consecutive two-year terms (12 years). Specifies that the COC shall be comprised of a minimum of seven members, rather than a minimum of “at least” seven members.

EXISTING LAW:

1. Authorizes, under Section 1 of Article XIII A of the California Constitution, school districts, community college districts, or county offices of education (COEs) to pass a General Obligation (GO) bond by 55% vote, provided that the local initiative includes specified accountability measures (Proposition 39 - 2000).
2. Requires the governing board of a school district or community college district to establish and appoint members to an independent COC within 60 days of the date that the governing board enters the election results on its minutes. (Education Code (EC) Section 15278(a))
3. Specifies that the purpose of the COC shall be to inform the public concerning the expenditure of bond revenues, including advising the public as to whether a school district or community college district is in compliance with the authorized uses of bond funds pursuant to Proposition 39. (EC Section 15278(b))
4. Requires the COC to consist of at least seven members who shall serve for a minimum term of two years without compensation and for no more than three consecutive terms. While consisting of a minimum of at least seven members, the COC shall be comprised as follows:
   1. One member shall be active in a business organization representing the business community located within the school district or community college district.
   2. One member shall be active in a senior citizens’ organization.
   3. One member shall be active in a bona fide taxpayers’ organization.
   4. For a school district, one member shall be the parent or guardian of a child enrolled in the school district. For a community college district, one member shall be a student who is both currently enrolled in the community college district and active in a community college group, such as student government. The community college student member may, at the discretion of the governing board of the community college district, serve up to six months after his or her graduation.
   5. For a school district, one member shall be both a parent or guardian of a child enrolled in the school district and active in a parent-teacher organization, such as the Parent Teacher Association or schoolsite council. For a community college district, one member shall be active in the support and organization of a community college or the community colleges of the district, such as a member of an advisory council or foundation. (EC Section 15282)
5. Specifies that an employee or official of the school district or community college district, a vendor, contractor, or consultant shall not be appointed to the COC. (EC Section 15282)

FISCAL EFFECT: None. This bill is keyed non-fiscal by the Legislative Counsel.

COMMENTS: Proposition 39. In 2000, voters passed Proposition 39, a Constitutional Amendment which, among others, gave school and community college districts the opportunity to seek approval of a local school facilities GO bond based on 55% vote rather than 2/3 vote, provided that the local bond initiative meets specified accountability measures, including identifying the projects to be funded by the bond measure and conducting annual independent financial and performance audits. AB 1908 (Lempert), Chapter 44, Statutes of 2000, a companion bill to Proposition 39, requires each district, within 60 days of the passage of a local bond with 55% vote to appoint a COC to monitor and review expenditures to ensure compliance with Proposition 39 requirements, and to keep the public informed about bond expenditures. The oversight committee must be comprised of a minimum of seven members. For school districts, the COC must include representatives of the business community, a bona fide taxpayers' organization, and a senior citizens' organization; a parent of a student attending the school district; and a parent active in a school's parent-teacher organization. AB 1908 specified that members of the COC be appointed for one two-year term and no more than two consecutive two-year terms (total of four years).

Under existing law, the State Board of Education (SBE) is authorized to waive certain sections of the EC or any regulations adopted by the SBE (EC 33050). Between 2006 and January 2017, SBE had granted 29 requests from school districts to waive the term limit to allow existing members to serve an additional term. The predominant reasons for the requests stem from districts' inability to find qualified individuals interested in serving on the committees and the desire for continuity.

AB 1199 (Brownley), Chapter 73, Statutes of 2012, extended the term of COC members from two consecutive two-year terms to three consecutive two-year terms. The author stated that the bill would alleviate the need for districts to pursue waivers to reappoint existing members to an additional term and reduce the workload at the SBE to process and approve the waivers.

This bill extends the term of the appointments from three consecutive two-year terms to six consecutive two-year terms to enable oversight committee members to serve 12 years instead of six. School districts are not required to appoint members for six terms, but will have authority to do so at their discretion without seeking a SBE waiver. Of the 29 waivers granted by the SBE, six were granted after the enactment of AB 1199.

The author states, “Current law (AB 1199, 2012) Education Code section 15282 allows for bond oversight committee members to serve three two year terms, or a maximum of six years. First, BOC [bond oversight committee] members can be difficult to find, as few people may match the criteria listed in the Education Code. Secondly, if the more experienced members leave after the current maximum of six years, it leads to a loss of expertise within the committee as a whole. And finally it allows members to see more of the process of a bond form beginning to end.”

Related legislation. AB 1253 (Cooley), held in the Assembly Appropriations Committee suspense file, requires rather than authorizes, the COC to conduct specified duties, and authorizes a COE to conduct specified investigations.

Prior related legislation. SB 581 (Wyland), Chapter 91, Statutes of 2013, requires the governing board of a district to provide the COC a response to any and all findings, recommendations and concerns raised in the Proposition 39 of 2000 annual, independent financial and performance audits of local education bond funds within three months of receiving the audits. Requires the final financial and performance audits to be submitted to the COC at the same time they are submitted to school or community college districts.

AB 1199 (Brownley), Chapter 73, Statutes of 2012, extends the term of local COC members from two consecutive two-year terms to three consecutive two-year terms.

SB 423 (Wyland), Chapter 237, Statutes of 2011, requires the financial and performance audits to be submitted to the COC by March 31 of each year.

REGISTERED SUPPORT / OPPOSITION:

Support

California League of Bond Oversight Committees (co-sponsor)

Howard Jarvis Taxpayers Association (co-sponsor)

Opposition

None received

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

 CONSENT  

Bill No: SB 341

Author:

Amended:

Vote:

SENATE EDUCATION COMMITTEE: 7-0, 3/22/17

AYES: Allen, Wilk, Galgiani, Leyva, Mendoza, Pan, Vidak

SUBJECT:

SOURCE: California League of Bond Oversight Committees

DIGEST: This bill doubles the number of terms that a member of a local bond Citizens’ Oversight Committee (COC) may serve from three to six consecutive terms.

ANALYSIS:

Existing law:

1. Authorizes a school district, community college district, or county office of education to incur bond indebtedness for the construction, reconstruction, rehabilitation, or replacement of school facilities, with the approval of 55 percent of the voters of the district or county. (Article XI, Section 18 of the California Constitution, also referred to as Proposition 39)
2. Provides that this vote threshold only applies if, among other things, constitutionally specified accountability requirements are met. These include requirements that the local bond measure includes a specific list of school projects to be funded and that the authorizing board conduct annual, independent financial and performance audits until all bond funds have been spent to ensure they are used exclusively for the projects listed in the measure. (Article XIII A of the California Constitution)
3. Provides that if a bond measure is authorized under the constitutional provisions established by Proposition 39, the governing board of the school or community college district must establish and appoint members to a COC within 60 days of entering the election results on its minutes. Among other things, the purpose of the COC is to review and report on bond fund expenditures to ensure a district’s compliance with the purposes and accountability requirements outlined in the California Constitution as the result of the passage of Proposition 39. (Education Code § 15278)
4. Provides that the COC consist of at least seven members to serve a term of two years for no more than three consecutive terms, and specifies the make-up of the COC, including the requirements that one member shall be active in a business organization representing the business community located within the district and that one member shall be active in a bona fide taxpayers’ organization. (EC § 15282)

This bill:

1. Provides that members of the COC must serve a minimum term of two years.
2. Increases the number of consecutive terms that COC members may serve from two to three two-year terms, thereby authorizing members to serve for a total of six, rather than four years.
3. Provides that the COC is to consist of seven members, rather than at least seven members.
4. Makes several technical and clarifying changes.

Comments

Waivers. Existing law provides the ability for the State Board of Education (SBE) to waive certain sections of the Education Code or regulations that are adopted by the SBE. In the past, the SBE has received numerous requests from school districts to waive the term limit of members serving on local COCs to allow them to serve additional terms. This is mainly attributed to the districts’ inability to find qualified individuals interested in serving on the COCs and the need for continuity. While the number of waiver requests that the SBE has received in recent years is unknown, this bill could alleviate the need for school districts to pursue waivers and also reduce the associated workload at the SBE to process and approve such waivers.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

SUPPORT: (Verified 3/22/17)

California League of Bond Oversight Committees (source)

Howard Jarvis Taxpayers Association

OPPOSITION: (Verified 3/22/17)

None received

Prepared by:

3/24/17 13:39:44

**** END ****

SENATE COMMITTEE ON EDUCATION

Senator Benjamin Allen, Chair

2017 - 2018 Regular

Bill No: SB 341 Hearing Date: March 22, 2017

Subject: School bonds: citizens’ oversight committee: member terms

SUMMARY

This bill doubles the number of terms that a member of a local bond Citizens’ Oversight Committee (COC) may serve from three to six consecutive terms.

BACKGROUND

Existing law:

1. Authorizes a school district, community college district, or county office of education to incur bond indebtedness for the construction, reconstruction, rehabilitation, or replacement of school facilities, with the approval of 55 percent of the voters of the district or county. (Article XI, Section 18 of the California Constitution, also referred to as Proposition 39)
2. Provides that this vote threshold only applies if, among other things, constitutionally specified accountability requirements are met. These include requirements that the local bond measure includes a specific list of school projects to be funded and that the authorizing board conduct annual, independent financial and performance audits until all bond funds have been spent to ensure they are used exclusively for the projects listed in the measure. (Article XIII A of the California Constitution)
3. Provides that if a bond measure is authorized under the constitutional provisions established by Proposition 39, the governing board of the school or community college district must establish and appoint members to a COC within 60 days of entering the election results on its minutes. Among other things, the purpose of the COC is to review and report on bond fund expenditures to ensure a district’s compliance with the purposes and accountability requirements outlined in the California Constitution as the result of the passage of Proposition 39. (Education Code § 15278)
4. Provides that the COC consist of at least seven members to serve a term of two years for no more than three consecutive terms, and specifies the make-up of the COC, including the requirements that one member shall be active in a business organization representing the business community located within the district and

that one member shall be active in a bona fide taxpayers’ organization.

(EC § 15282)

ANALYSIS

This bill modifies the terms of service on a local bond Citizens’ Oversight Committee (COC) established pursuant to the constitutional provisions established by Proposition 39. More specifically it:

1. Provides that members of the COC must serve a minimum term of two years.
2. Increases the number of consecutive terms that COC members may serve from two to three two year terms, thereby authorizing members to serve for a total of six, rather than four years.
3. Makes several technical and clarifying changes.

STAFF COMMENTS

1. Need for the bill. According to the author, school districts have had difficulty finding individuals who meet the specified criteria to serve on the local COC. Further, if the more experienced members leave after the current maximum of six years, it may lead to a loss of expertise within the committee as a whole. The author also indicates that extending the term to 12 years will allow members to see more of the process of a bond from beginning to end, and that “monitoring how a bond is spent for six of a potential 30 year repayment window is an insufficient way to provide proper oversight.”
2. Waivers. Existing law provides the ability for the State Board of Education (SBE) to waive certain sections of the Education Code or regulations that are adopted by the SBE. In the past, the SBE has received numerous requests from school districts to waive the term limit of members serving on local COCs to allow them to serve additional terms. This is mainly attributed to the districts’ inability to find qualified individuals interested in serving on the COCs and the need for continuity. While the number of waiver requests that the SBE has received in recent years is unknown, this bill could alleviate the need for school districts to pursue waivers and also reduce the associated workload at the SBE to process and approve such waivers.
3. Previous legislation. Chapter 73, Statutes of 2012 (AB 1199, Brownley) extended the number of terms that a member of a local bond citizen’s oversight committee may serve, from two to three consecutive terms and provided that members must serve for a minimum term of two years.
4. Author’s amendments. The author wishes to amend the bill to provide that the COC consist of seven members, rather than at least seven members, for which staff concurs.

SUPPORT

California League of Bond Oversight Committees

Howard Jarvis Taxpayers Association

OPPOSITION

None received.

-- END --