Existing law requires a prospective bidder for a construction contract for certain school facility projects to submit a prequalification questionnaire and financial statement, under oath, as part of the bidding process, and requires each prospective bidder to submit a bid by completing and executing a standardized proposal form. That law applies these requirements only to public projects, as defined, for which the governing board of the school district uses funds received pursuant to specified law or from future state school bonds, as specified.

This bill would extend the above-referenced requirements to public projects for which the governing board of the school district uses state general funds. By expanding the crime of perjury, this bill would establish a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Existing law requires a prospective bidder for a construction contract for certain school facility projects to submit a prequalification questionnaire and financial statement, under oath, as part of the bidding process, and requires each prospective bidder to submit a bid by completing and executing a standardized proposal form. That law applies these requirements only to public projects, as defined, for which the governing board of the school district uses funds received pursuant to specified law or from future state school bonds, as specified.

This bill would extend the above-referenced requirements to public projects for which the governing board of the school district uses state general funds. By expanding the crime of perjury, this bill would establish a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Existing law requires a prospective bidder for a construction contract for certain school facility projects to submit a prequalification questionnaire and financial statement, under oath, as part of the bidding process, and requires each prospective bidder to submit a bid by completing and executing a standardized proposal form. That law applies these requirements only to public projects, as defined, for which the governing board of the school district uses funds received pursuant to specified law or from future state school bonds, as specified.

This bill would extend the above-referenced requirements to public projects for which the governing board of the school district uses state general funds. By expanding the crime of perjury, this bill would establish a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Existing law requires the Commission on Teacher Credentialing to establish standards and procedures for the issuance and renewal of credentials, certificates, and permits. Existing law, until July 1, 2023, authorizes any holder of a credential or permit issued by the commission that authorizes the holder to substitute teach in a general, special, or career technical education assignment to serve in a substitute teaching assignment aligned with their authorization, including for staff vacancies, for up to 60 cumulative days for any one assignment.

This bill would, until July 1, 2024, authorize any holder of a credential or permit issued by the commission that authorizes the holder to substitute teach in a general, special, or career technical education assignment to serve in a substitute teaching assignment aligned with their authorization, including for staff vacancies, for up to 60 cumulative days for any one assignment. assignment, as provided. In order to use this authority, the bill would require a school district to comply with certain existing hiring provisions.

Existing law establishes the Instructional School Gardens Program for the promotion, creation, and support of instructional school gardens through the allocation of grants, and through technical assistance provided, to school districts, charter schools, and county offices of education. Existing law authorizes a school district, charter school, or county office of education to apply to the Superintendent of Public Instruction for a 3-year grant under this program in a manner determined by the Superintendent, in order to develop and maintain an instructional school garden. Existing law requires a school district, charter school, or county office of education, as a condition of receiving funding, within 6 months of the final expenditure of the instructional school garden funds received, to report to the Superintendent, in a manner prescribed by the Superintendent, in conjunction with an interagency working group, regarding the use of the funds and the manner in which the instructional school garden or gardens are used to complement the academic program of the participating school or schools.

This bill would reduce the deadline to submit that report from 6 months after the final expenditure of those funds to 3 months after that final expenditure.

CONCURRENCE IN SENATE AMENDMENTS

CSA2 Bill Id:AB 1433

Author:(Rendon)

As Amended Ver:September 1, 2023

Majority vote

SUMMARY

Original Committee of Reference: ED.

Expands the requirement of general contractors and specified subcontractors to complete and submit a prequalification questionnaire and financial statement prior to bidding on school construction projects to include projects using state General Fund resources.

Senate Amendments

Current Committee Recommendation: Concur

Remove the content of this bill and replace it with language to expand the requirement of general contractors and specified subcontractors to complete and submit a prequalification questionnaire and financial statement prior to bidding on school construction projects to include projects using state General Fund resources.

COMMENTS

Public project competitive bidding. Under current law, school districts are required to competitively bid any public works contract over $15,000 and award the contract to the lowest responsible bidder. Alternative methods for awarding contracts include: (a) design-build, with a school district issuing a request for proposal for both the design and construction of projects; (b) best value, allowing school districts to consider factors other than cost; and (c) job order contracting, based on prices for specific construction tasks.

Prequalification process for prospective bidders. In 2012, AB 1565 (Fuentes), Chapter 808, Statutes of 2012, established a five-year pilot requiring school districts using state bond funds must establish a prequalification process requiring prospective bidders for public works contracts of $1 million or more to complete a standardized questionnaire and submit financial statements. In 2018, AB 2031 (O'Donnell), Chapter 534, Statutes of 2018, removed the sunset on this requirement, which is intended to mitigate the risk of school districts entering into contracts with substandard companies.

The questionnaire is provided by school districts, and may require contractors to provide detailed information regarding 1) the company's financial status, including whether the company has been in bankruptcy or involved in a civil lawsuit; 2) licensing information; 3) prior public contracting experience; 4) whether the contractor has been involved or been found to have violated any federal, state or local laws; and 5) whether the contractor has violated any labor and health and safety laws.

Since the enactment of prequalification for state bond funded School Facility Program projects, several other contracting methods have also incorporated a prequalification requirement, including lease-leaseback, design-build, and job order contracting.

The School Facility Program was recently infused with state General Fund resources. The Kindergarten through Community College Public Education Facilities Bond Act of 2016 (Proposition 51), approved by voters in November 2016, authorized $7 billion in state General Obligation bonds to support K-12 school facilities construction. These funds support new construction, modernization, retrofitting, career technical education, and charter school facility projects. The 2022-23 Budget allocates the remaining Proposition 51 bond funds – approximately $1.4 billion – to support school construction projects and provides $1.3 billion one-time General Fund with 2021-22 funds, approximately $2.1 billion one-time General Fund in 2023-24 and $875 million one-time General Fund in 2024-25 to support new construction and modernization projects through the School Facility Program. Additionally, $250 million one-time General Fund in 2021-22 is provided to support a school facility project in the Lynwood Unified School District.

By expanding existing prequalification requirements to projects funded with state General Fund resources, this bill ensures school construction projects built under the state School Facility Program will be subject to the same bidding requirements, regardless of their funding source.

According to the Author

"No parent should ever have to worry about their children's well-being when they go off to school. As such, we must ensure that our students are learning in a safe environment, which obviously includes the buildings where classrooms are located. In 2020 at Lynwood High School, in my district, a portion of a three-story classroom building collapsed due to structural failures caused by poor construction practices. Thankfully – and only due to the COVID pandemic – no one was present when the school collapsed, but we must take steps to guard against any harm coming to our students and school staff.

AB 1433 is one such step. It will make certain that school construction projects, funded by General Fund dollars, utilize prequalified contractors who provide detailed information regarding their experience, quality, and skill. Current law applies these standards to construction projects funded by state school facility bond funds, but not the General Fund. This bill will require that, regardless of the state funding source, trustworthy contractors are working on school facility projects. By doing so, we can help guarantee that incidents like the one at Lynnwood High School, never happen again."

Arguments in Support

The Lynwood Unified School District, Office of the Superintendent, writes, "In my capacity as the Superintendent for the Lynwood Unified School District, I emphasize the critical importance of this measure. In June 2020, Lynwood High School, which was not even 25 years old, witnessed the unexpected collapse of approximately six tons of concrete. Thankfully, due to the pandemic, no students were present on campus, and no injuries occurred. Nonetheless, this incident compelled us to relocate a high school, close a middle school, and transfer middle school students to elementary facilities. This upheaval affected over 12,000 students. I am acutely aware of how school infrastructure directly impacts the learning environment, and I am confident that AB 1433 will effectively address long-standing issues.

The absence of prequalification requirements for school construction projects funded by the General Fund is a concerning loophole that could compromise the safety and quality of our educational institutions. I am profoundly appreciative that AB 1433 seeks to rectify this gap by implementing stringent prequalification measures for contractors. By mandating comprehensive information about contractors' experience, quality, and skills, this bill ensures that only reputable and competent professionals are entrusted with the vital responsibility of constructing and maintaining our schools.

AB 1433 adopts a comprehensive approach by enforcing these prequalification requirements irrespective of the funding source. It aligns with values such as transparency, accountability, and a dedication to excellence. By lending your support to this bill, we can collaboratively work towards guaranteeing safe, conducive, and well-maintained learning environments for our students, promoting their growth and development.

Arguments in Opposition

None on file

FISCAL COMMENTS

According to the Senate Appropriations Committee, this bill could result in potentially significant cost pressure on current and future General Fund resources for K-12 school construction projects. The extent of the costs will depend on how many construction projects school districts undertake, the amount of resources spent on reviewing and approving contractor applications, and the number of appeals that must be addressed from contractors that are denied prequalification. The cost per project to prequalify can be in the tens of thousands dollars. However, to the extent that more qualified contractors who produce higher quality work are selected, school districts may incur unknown savings in the long run.

VOTES

ASM EDUCATION: 7-0-0

YES: Muratsuchi, Megan Dahle, Juan Carrillo, Hoover, Lee, McCarty, Quirk-Silva

ASM APPROPRIATIONS: 16-0-0

YES: Holden, Megan Dahle, Bryan, Calderon, Wendy Carrillo, Dixon, Mike Fong, Hart, Lowenthal, Mathis, Papan, Pellerin, Robert Rivas, Sanchez, Weber, Wilson

ASSEMBLY FLOOR: 66-0-14

YES: Addis, Aguiar-Curry, Alanis, Bains, Bennett, Berman, Boerner, Bryan, Calderon, Wendy Carrillo, Chen, Connolly, Megan Dahle, Davies, Essayli, Flora, Mike Fong, Vince Fong, Friedman, Gabriel, Gallagher, Garcia, Gipson, Grayson, Haney, Holden, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Low, Lowenthal, Maienschein, Mathis, McKinnor, Muratsuchi, Stephanie Nguyen, Pacheco, Papan, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Reyes, Luz Rivas, Robert Rivas, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Weber, Wicks, Wilson, Zbur, Rendon

ABS, ABST OR NV: Alvarez, Arambula, Bauer-Kahan, Bonta, Juan Carrillo, Cervantes, Dixon, Hart, Lee, McCarty, Ortega, Jim Patterson, Ward, Wood

SENATE FLOOR: 39-0-1

YES: Allen, Alvarado-Gil, Archuleta, Ashby, Atkins, Becker, Blakespear, Bradford, Cortese, Dahle, Dodd, Durazo, Eggman, Glazer, Gonzalez, Grove, Hurtado, Jones, Laird, Limón, McGuire, Menjivar, Min, Newman, Nguyen, Niello, Ochoa Bogh, Padilla, Portantino, Roth, Rubio, Seyarto, Skinner, Smallwood-Cuevas, Stern, Umberg, Wahab, Wiener, Wilk

ABS, ABST OR NV: Caballero

ASM EDUCATION: 6-0-1

YES: Muratsuchi, Megan Dahle, Juan Carrillo, Hoover, Lee, McCarty

ABS, ABST OR NV: Quirk-Silva

UPDATED

VERSION: September 1, 2023

CONSULTANT: Marguerite Ries / ED. / (916) 319-2087 FN: 0002454

CONCURRENCE IN SENATE AMENDMENTS

CSA1 Bill Id:AB 1433

Author:(Rendon)

As Amended Ver:September 1, 2023

Majority vote

SUMMARY

Expands the requirement of general contractors and specified subcontractors to complete and submit a prequalification questionnaire and financial statement prior to bidding on school construction projects to include projects using state General Fund resources.

Senate Amendments

Remove the content of this bill and replace it with language to expand the requirement of general contractors and specified subcontractors to complete and submit a prequalification questionnaire and financial statement prior to bidding on school construction projects to include projects using state General Fund resources.

COMMENTS

Public project competitive bidding. Under current law, school districts are required to competitively bid any public works contract over $15,000 and award the contract to the lowest responsible bidder. Alternative methods for awarding contracts include: (a) design-build, with a school district issuing a request for proposal for both the design and construction of projects; (b) best value, allowing school districts to consider factors other than cost; and (c) job order contracting, based on prices for specific construction tasks.

Prequalification process for prospective bidders. In 2012, AB 1565 (Fuentes), Chapter 808, Statutes of 2012, established a five-year pilot requiring school districts using state bond funds must establish a prequalification process requiring prospective bidders for public works contracts of $1 million or more to complete a standardized questionnaire and submit financial statements. In 2018, AB 2031 (O'Donnell), Chapter 534, Statutes of 2018, removed the sunset on this requirement, which is intended to mitigate the risk of school districts entering into contracts with substandard companies.

The questionnaire is provided by school districts, and may require contractors to provide detailed information regarding 1) the company's financial status, including whether the company has been in bankruptcy or involved in a civil lawsuit; 2) licensing information; 3) prior public contracting experience; 4) whether the contractor has been involved or been found to have violated any federal, state or local laws; and 5) whether the contractor has violated any labor and health and safety laws.

Since the enactment of prequalification for state bond funded School Facility Program projects, several other contracting methods have also incorporated a prequalification requirement, including lease-leaseback, design- build, and job order contracting.

The School Facility Program was recently infused with state General Fund resources. The Kindergarten through Community College Public Education Facilities Bond Act of 2016 (Proposition 51), approved by voters in November 2016, authorized $7 billion in state General Obligation bonds to support K-12 school facilities construction. These funds support new construction, modernization, retrofitting, career technical education, and charter school facility projects. The 2022-23 Budget allocates the remaining Proposition 51 bond funds – approximately $1.4 billion – to support school construction projects and provides $1.3 billion one-time General Fund with 2021-22 funds, approximately $2.1 billion one-time General Fund in 2023-24 and $875 million one-time General Fund in 2024-25 to support new construction and modernization projects through the School Facility Program. Additionally, $250 million one-time General Fund in 2021-22 is provided to support a school facility project in the Lynwood Unified School District.

By expanding existing prequalification requirements to projects funded with state General Fund resources, this bill ensures school construction projects built under the state School Facility Program will be subject to the same bidding requirements, regardless of their funding source.

According to the Author

"No parent should ever have to worry about their children's well-being when they go off to school. As such, we must ensure that our students are learning in a safe environment, which obviously includes the buildings where classrooms are located. In 2020 at Lynwood High School, in my district, a portion of a three-story classroom building collapsed due to structural failures caused by poor construction practices. Thankfully – and only due to the COVID pandemic – no one was present when the school collapsed, but we must take steps to guard against any harm coming to our students and school staff.

AB 1433 is one such step. It will make certain that school construction projects, funded by General Fund dollars, utilize prequalified contractors who provide detailed information regarding their experience, quality, and skill. Current law applies these standards to construction projects funded by state school facility bond funds, but not the General Fund. This bill will require that, regardless of the state funding source, trustworthy contractors are working on school facility projects. By doing so, we can help guarantee that incidents like the one at Lynnwood High School, never happen again."

Arguments in Support

The Lynwood Unified School District, Office of the Superintendent, writes, "In my capacity as the Superintendent for the Lynwood Unified School District, I emphasize the critical importance of this measure. In June 2020, Lynwood High School, which was not even 25 years old, witnessed the unexpected collapse of approximately six tons of concrete. Thankfully, due to the pandemic, no students were present on campus, and no injuries occurred. Nonetheless, this incident compelled us to relocate a high school, close a middle school, and transfer middle school students to elementary facilities. This upheaval affected over 12,000 students. I am acutely aware of how school infrastructure directly impacts the learning environment, and I am confident that AB 1433 will effectively address long-standing issues.

The absence of prequalification requirements for school construction projects funded by the General Fund is a concerning loophole that could compromise the safety and quality of our educational institutions. I am profoundly appreciative that AB 1433 seeks to rectify this gap by implementing stringent prequalification measures for contractors. By mandating comprehensive information about contractors' experience, quality, and skills, this bill ensures that only reputable and competent professionals are entrusted with the vital responsibility of constructing and maintaining our schools.

AB 1433 adopts a comprehensive approach by enforcing these prequalification requirements irrespective of the funding source. It aligns with values such as transparency, accountability, and a dedication to excellence. By lending your support to this bill, we can collaboratively work towards guaranteeing safe, conducive, and well-maintained learning environments for our students, promoting their growth and development.

Arguments in Opposition

None on file

FISCAL COMMENTS

According to the Senate Appropriations Committee, this bill could result in potentially significant cost pressure on current and future General Fund resources for K-12 school construction projects. The extent of the costs will depend on how many construction projects school districts undertake, the amount of resources spent on reviewing and approving contractor applications, and the number of appeals that must be addressed from contractors that are denied prequalification. The cost per project to prequalify can be in the tens of thousands dollars. However, to the extent that more qualified contractors who produce higher quality work are selected, school districts may incur unknown savings in the long run.

VOTES:

ASM EDUCATION: 7-0-0

YES: Muratsuchi, Megan Dahle, Juan Carrillo, Hoover, Lee, McCarty, Quirk-Silva

ASM APPROPRIATIONS: 16-0-0

YES: Holden, Megan Dahle, Bryan, Calderon, Wendy Carrillo, Dixon, Mike Fong, Hart, Lowenthal, Mathis, Papan, Pellerin, Robert Rivas, Sanchez, Weber, Wilson

ASSEMBLY FLOOR: 66-0-14

YES: Addis, Aguiar-Curry, Alanis, Bains, Bennett, Berman, Boerner, Bryan, Calderon, Wendy Carrillo, Chen, Connolly, Megan Dahle, Davies, Essayli, Flora, Mike Fong, Vince Fong, Friedman, Gabriel, Gallagher, Garcia, Gipson, Grayson, Haney, Holden, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Low, Lowenthal, Maienschein, Mathis, McKinnor, Muratsuchi, Stephanie Nguyen, Pacheco, Papan, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Reyes, Luz Rivas, Robert Rivas, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Weber, Wicks, Wilson, Zbur, Rendon

ABS, ABST OR NV: Alvarez, Arambula, Bauer-Kahan, Bonta, Juan Carrillo, Cervantes, Dixon, Hart, Lee, McCarty, Ortega, Jim Patterson, Ward, Wood

SENATE FLOOR: 39-0-1

YES: Allen, Alvarado-Gil, Archuleta, Ashby, Atkins, Becker, Blakespear, Bradford, Cortese, Dahle, Dodd, Durazo, Eggman, Glazer, Gonzalez, Grove, Hurtado, Jones, Laird, Limón, McGuire, Menjivar, Min, Newman, Nguyen, Niello, Ochoa Bogh, Padilla, Portantino, Roth, Rubio, Seyarto, Skinner, Smallwood-Cuevas, Stern, Umberg, Wahab, Wiener, Wilk

ABS, ABST OR NV: Caballero

UPDATED

VERSION: September 1, 2023

CONSULTANT: Chelsea Kelley / Marguerite Ries / ED. / (916) 319-2087 FN: 0002259

 THIRD READING  

Bill No: AB 1433

Author: Rendon (D), et al.

Amended: 9/1/23 in Senate

Vote: 21

SENATE EDUCATION COMMITTEE: 7-0, 7/12/23

AYES: Newman, Ochoa Bogh, Cortese, Glazer, McGuire, Smallwood-Cuevas, Wilk

SENATE APPROPRIATIONS COMMITTEE: 7-0, 9/1/23

AYES: Portantino, Jones, Ashby, Bradford, Seyarto, Wahab, Wiener

ASSEMBLY FLOOR: 66-0, 5/11/23 (Consent) - See last page for vote

SUBJECT: Public contracts: school facility projects

SOURCE: Author

DIGEST:

This bill expands the requirement of general contractors and specified subcontractors to complete and submit a prequalification questionnaire and financial statement prior to bidding on school construction projects to include projects using state General Fund resources.

ANALYSIS:

Existing law:

1. Requires school districts with an average daily attendance (ADA) over 2,500 to establish a process for prequalifying general contractors and if utilized, each electrical, mechanical and plumbing contractor for public works projects over $1 million and funded by state school facility bond funds. (Public Contract Code (PCC) Section 20111.6)
2. Requires the governing board of a school district meeting the requirements in (1) to do the following:
   1. Require prospective bidders for a construction contract to complete and submit to the governing board of the school district a standardized prequalification questionnaire and financial statement.
   2. Adopt and apply a uniform system of rating bidders based on the completed questionnaires and financial statements. (PCC Section 20111.6)
3. Requires the questionnaire, financial statement and the uniform system of rating bidders to cover, at a minimum, the issues covered by the standardized questionnaire and model guidelines for rating bidders developed by the Department of Industrial Relations. (PCC Section 20111.6)
4. Authorizes the governing board of a school district to establish a process to prequalify a person, firm, or corporation on a quarterly or annual basis. Specifies that a prequalification shall be valid for one calendar year following the date of initial prequalification. (PCC Section 20111.6)
5. Requires the governing board of a school district to competitively bid and award to the lowest bidder contracts involving the following:
   1. An expenditure of $50,000 or more for the purchase of equipment, materials, or supplies, services (except for construction services), and repairs.
   2. An expenditure of $15,000 or more for a public contract project defined as construction, reconstruction, erection, alteration, renovation, improvement, demolition, repair, painting or repainting of any publicly owned, leased, or operated facility. (PCC Sections 20111 and 22002)
6. Establishes the Local Agency Public Construction Act, which authorizes a public entity to establish a prequalification process and requires the Department of Industrial Relations, in collaboration with affected agencies and interested parties, to develop model guidelines for rating bidders, and drafting a standardized questionnaire that may be used by public entities. (PCC 20100 et seq.)
7. Establishes the Leroy F. Greene School Facilities Act of 1998 and requires the State Allocation Board (SAB) 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. (Education Code 17070.35)

This bill expands the requirement of general contractors and specified subcontractors to complete and submit a prequalification questionnaire and financial statement prior to bidding on school construction projects to include projects using state General Fund resources.

Comments

1. Need for the bill. According to the author, “No parent should ever have to worry about their children’s well-being when they go off to school. As such, we must ensure that our students are learning in a safe environment, which obviously includes the buildings where classrooms are located. In 2020 at Lynwood High School, in my district, a portion of a three-story classroom building collapsed due to structural failures caused by poor construction practices. Thankfully – and only due to the COVID pandemic – no one was present when the school collapsed, but we must take steps to guard against any harm coming to our students and school staff.

“AB 1433 is one such step. It will make certain that school construction projects, funded by General Fund dollars, utilize prequalified contractors who provide detailed information regarding their experience, quality, and skill. Current law applies these standards to construction projects funded by state school facility bond funds, but not the General Fund. This bill will require that, regardless of the state funding source, trustworthy contractors are working on school facility projects. By doing so, we can help guarantee that incidents like the one at Lynnwood High School, never happen again.”

1. Public project competitive bidding. Under current law, school districts are required to competitively bid any public works contract over $15,000 and award the contract to the lowest responsible bidder. Alternative methods for awarding contracts include: (a) design-build, with a school district issuing a request for proposal for both the design and construction of projects; (b) best value, allowing school districts to consider factors other than cost; and (c) job order contracting, based on prices for specific construction tasks.
2. Prequalification process for prospective bidders. In 2012, AB 1565 (Fuentes, Chapter 808, Statutes of 2012) established a five-year pilot requiring school districts using state bond funds must establish a prequalification process requiring prospective bidders for public works contracts of $1 million or more to complete a standardized questionnaire and submit financial statements. In 2018, AB 2031 (O’Donnell, Chapter 534, Statutes of 2018) removed the sunset on this requirement, which is intended to mitigate the risk of school districts entering into contracts with substandard companies.

The questionnaire is provided by school districts, and may require contractors to provide detailed information regarding (a) the company’s financial status, including whether the company has been in bankruptcy or involved in a civil lawsuit; (b) licensing information; (c) prior public contracting experience; (d) whether the contractor has been involved or been found to have violated any federal, state or local laws; and (e) whether the contractor has violated any labor and health and safety laws.

Since the enactment of prequalification for state bond funded School Facility Program projects, several other contracting methods have also incorporated a prequalification requirement, including lease-leaseback, design- build, and job order contracting.

1. The School Facility Program was recently infused with state General Fund resources. The Kindergarten through Community College Public Education Facilities Bond Act of 2016 (Proposition 51), approved by voters in November 2016, authorized $7 billion in state General Obligation bonds to support K-12 school facilities construction. These funds support new construction, modernization, retrofitting, career technical education, and charter school facility projects. The 2022-23 Budget allocates the remaining Proposition 51 bond funds—approximately $1.4 billion—to support school construction projects and provides $1.3 billion one-time General Fund with 2021-22 funds, approximately $2.1 billion one-time General Fund in 2023-24 and $875 million one-time General Fund in 2024-25 to support new construction and modernization projects through the School Facility Program. Additionally, $250 million one-time General Fund in 2021-22 is provided to support a school facility project in the Lynwood Unified School District.

By expanding existing prequalification requirements to projects funded with state General Fund resources, this bill ensures school construction projects built under the state School Facility Program will be subject to the same bidding requirements, regardless of their funding source.

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes

According to the Senate Appropriations Committee, this bill could result in potentially significant cost pressure on current and future General Fund resources for K-12 school construction projects. The extent of the costs will depend on how many construction projects school districts undertake, the amount of resources spent on reviewing and approving contractor applications, and the number of appeals that must be addressed from contractors that are denied prequalification. The cost per project to prequalify can be in the tens of thousands dollars. However, to the extent that more qualified contractors who produce higher quality work are selected, school districts may incur unknown savings in the long run.

SUPPORT: (Verified 9/1/23)

Los Angeles Unified School District
Lynwood Unified School District
State Building and Construction Trades Council of California

OPPOSITION: (Verified 9/1/23)

None received

ASSEMBLY FLOOR: 66-0, 5/11/23

AYES: Addis, Aguiar-Curry, Alanis, Bains, Bennett, Berman, Boerner, Bryan, Calderon, Wendy Carrillo, Chen, Connolly, Megan Dahle, Davies, Essayli, Flora, Mike Fong, Vince Fong, Friedman, Gabriel, Gallagher, Garcia, Gipson, Grayson, Haney, Holden, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Low, Lowenthal, Maienschein, Mathis, McKinnor, Muratsuchi, Stephanie Nguyen, Pacheco, Papan, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Reyes, Luz Rivas, Robert Rivas, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Weber, Wicks, Wilson, Zbur, Rendon

NO VOTE RECORDED: Alvarez, Arambula, Bauer-Kahan, Bonta, Juan Carrillo, Cervantes, Dixon, Hart, Lee, McCarty, Ortega, Jim Patterson, Ward, Wood

Prepared by: Ian Johnson / ED. / (916) 651-4105

9/4/23 9:25:07

**** END ****

SENATE COMMITTEE ON

Senator Anthony Portantino, Chair

2023 - 2024 Regular Session

AB 1433 (Rendon) - Public contracts: school facility projects

Bill Summary:

This bill expands the requirement of general contractors and specified subcontractors to complete and submit a prequalification questionnaire and financial statement prior to bidding on school construction projects to include projects using state General Fund resources.

*********** ANALYSIS ADDENDUM – SUSPENSE FILE ***********

The following information is revised to reflect amendments

adopted by the committee on September 1, 2023

Fiscal Impact:

This bill could result in potentially significant cost pressure on current and future General Fund resources for K-12 school construction projects. The extent of the costs will depend on how many construction projects school districts undertake, the amount of resources spent on reviewing and approving contractor applications, and the number of appeals that must be addressed from contractors that are denied prequalification. The cost per project to prequalify can be in the tens of thousands dollars. However, to the extent that more qualified contractors who produce higher quality work are selected, school districts may incur unknown savings in the long run.

Author Amendments:

Add Senator Gonzalez as a principal coauthor.

-- END --

SENATE COMMITTEE ON APPROPRIATIONS

Senator Anthony Portantino, Chair

2023 - 2024 Regular Session

AB 1433 (Rendon) - Public contracts: school facility projects

Bill Summary:

This bill expands the requirement of general contractors and specified subcontractors to complete and submit a prequalification questionnaire and financial statement prior to bidding on school construction projects to include projects using state General Fund resources.

Fiscal Impact:

This bill could result in potentially significant cost pressure on current and future General Fund resources for K-12 school construction projects. The extent of the costs will depend on how many construction projects school districts undertake, the amount of resources spent on reviewing and approving contractor applications, and the number of appeals that must be addressed from contractors that are denied prequalification. The cost per project to prequalify can be in the tens of thousands dollars. However, to the extent that more qualified contractors who produce higher quality work are selected, school districts may incur unknown savings in the long run.

Background:

Existing law requires school districts with an average daily attendance (ADA) over 2,500 to establish a process for prequalifying general contractors and if utilized, each electrical, mechanical and plumbing contractor for public works projects over $1 million and funded by state school facility bond funds. School district governing boards meeting these requirements shall:

1. Require prospective bidders for a construction contract to complete and submit to the governing board of the school district a standardized prequalification questionnaire and financial statement.
2. Adopt and apply a uniform system of rating bidders based on the completed questionnaires and financial statements.

Existing law requires the questionnaire, financial statement and the uniform system of rating bidders to cover, at a minimum, the issues covered by the standardized questionnaire and model guidelines for rating bidders developed by the Department of Industrial Relations (DIR).

Existing law authorizes the governing board of a school district to establish a process to prequalify a person, firm, or corporation on a quarterly or annual basis. It specifies that a prequalification shall be valid for one calendar year following the date of initial prequalification.

Existing law requires the governing board of a school district to competitively bid and award to the lowest bidder contracts involving an expenditure of $50,000 or more for the purchase of equipment, materials, or supplies, services (except for construction services), and repairs and an expenditure of $15,000 or more for a public contract project defined as construction, reconstruction, erection, alteration, renovation, improvement, demolition, repair, painting or repainting of any publicly owned, leased, or operated facility.

Proposed Law:

This bill expands the requirement of general contractors and specified subcontractors to complete and submit a prequalification questionnaire and financial statement prior to bidding on school construction projects to include projects using state General Fund resources.

Staff Comments:

In 2012, AB 1565 (Fuentes), Chapter 808, Statutes of 2012, established a five-year pilot requiring school districts using state bond funds to establish a prequalification process requiring prospective bidders for public works contracts of $1 million or more to complete a standardized questionnaire and submit financial statements. In 2018, AB 2031 (O’Donnell, Chapter 534, Statutes of 2018) removed the sunset date on this requirements. The questionnaire is provided by school districts, and may require contractors to provide detailed information, including the company’s financial status, whether the company has been in bankruptcy or involved in a civil lawsuit, licensing information and whether the contractor has violated any labor and health and safety laws.

While the prequalification process is intended to mitigate the risk of school districts entering into contracts with substandard companies, it can create additional work and upfront costs for schools seeking construction funding. The costs could stem from the related activities or potential appeals from contractors that are denied pre-qualification. This could then create cost pressure on existing and future resources that would be expended on these activities. Additionally, to the extent that the universe of bidders is narrowed by the process, schools may end up paying more for construction projects. It can also lead to situations where a contractor presents a low bid and then issues change orders after the project has begun, which can drive increased costs and lead to delays in completion.

For some districts, using a prequalification process can save them money in the long term because they are likely to engage more qualified contractors who produce higher quality work and have fewer change orders.

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SENATE COMMITTEE ON APPROPRIATIONS

Senator Anthony Portantino, Chair

2023 - 2024 Regular Session

AB 1433 (Rendon) - Public contracts: school facility projects

Bill Summary:

This bill expands the requirement of general contractors and specified subcontractors to complete and submit a prequalification questionnaire and financial statement prior to bidding on school construction projects to include projects using state General Fund resources.

Fiscal Impact:

This bill could result in potentially significant cost pressure on current and future General Fund resources for K-12 school construction projects. The extent of the costs will depend on how many construction projects school districts undertake, the amount of resources spent on reviewing and approving contractor applications, and the number of appeals that must be addressed from contractors that are denied prequalification. The cost per project to prequalify can be in the tens of thousands dollars. However, to the extent that more qualified contractors who produce higher quality work are selected, school districts may incur unknown savings in the long run.

Background:

Existing law requires school districts with an average daily attendance (ADA) over 2,500 to establish a process for prequalifying general contractors and if utilized, each electrical, mechanical and plumbing contractor for public works projects over $1 million and funded by state school facility bond funds. School district governing boards meeting these requirements shall:

1. Require prospective bidders for a construction contract to complete and submit to the governing board of the school district a standardized prequalification questionnaire and financial statement.
2. Adopt and apply a uniform system of rating bidders based on the completed questionnaires and financial statements.

Existing law requires the questionnaire, financial statement and the uniform system of rating bidders to cover, at a minimum, the issues covered by the standardized questionnaire and model guidelines for rating bidders developed by the Department of Industrial Relations (DIR).

Existing law authorizes the governing board of a school district to establish a process to prequalify a person, firm, or corporation on a quarterly or annual basis. It specifies that a prequalification shall be valid for one calendar year following the date of initial prequalification.

Existing law requires the governing board of a school district to competitively bid and award to the lowest bidder contracts involving an expenditure of $50,000 or more for the purchase of equipment, materials, or supplies, services (except for construction services), and repairs and an expenditure of $15,000 or more for a public contract project defined as construction, reconstruction, erection, alteration, renovation, improvement, demolition, repair, painting or repainting of any publicly owned, leased, or operated facility.

Proposed Law:

This bill expands the requirement of general contractors and specified subcontractors to complete and submit a prequalification questionnaire and financial statement prior to bidding on school construction projects to include projects using state General Fund resources.

Staff Comments:

In 2012, AB 1565 (Fuentes), Chapter 808, Statutes of 2012, established a five-year pilot requiring school districts using state bond funds to establish a prequalification process requiring prospective bidders for public works contracts of $1 million or more to complete a standardized questionnaire and submit financial statements. In 2018, AB 2031 (O’Donnell, Chapter 534, Statutes of 2018) removed the sunset date on this requirements. The questionnaire is provided by school districts, and may require contractors to provide detailed information, including the company’s financial status, whether the company has been in bankruptcy or involved in a civil lawsuit, licensing information and whether the contractor has violated any labor and health and safety laws.

While the prequalification process is intended to mitigate the risk of school districts entering into contracts with substandard companies, it can create additional work and upfront costs for schools seeking construction funding. The costs could stem from the related activities or potential appeals from contractors that are denied pre-qualification. This could then create cost pressure on existing and future resources that would be expended on these activities. Additionally, to the extent that the universe of bidders is narrowed by the process, schools may end up paying more for construction projects. It can also lead to situations where a contractor presents a low bid and then issues change orders after the project has begun, which can drive increased costs and lead to delays in completion.

For some districts, using a prequalification process can save them money in the long term because they are likely to engage more qualified contractors who produce higher quality work and have fewer change orders.

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SENATE COMMITTEE ON EDUCATION

Senator Josh Newman, Chair

2023 - 2024 Regular

Bill No: Hearing Date: July 12, 2023

Subject: .

NOTE: This bill has been amended to replace its contents and this is the first time the bill is being heard in its current form.

SUMMARY

This bill expands the requirement of general contractors and specified subcontractors to complete and submit a prequalification questionnaire and financial statement prior to bidding on school construction projects to include projects using state General Fund resources.

BACKGROUND

1. Requires school districts with an average daily attendance (ADA) over 2,500 to establish a process for prequalifying general contractors and if utilized, each electrical, mechanical and plumbing contractor for public works projects over $1 million and funded by state school facility bond funds. (Public Contract Code (PCC) Section 20111.6)
2. Requires the governing board of a school district meeting the requirements in (1) to do the following:
   1. Require prospective bidders for a construction contract to complete and submit to the governing board of the school district a standardized prequalification questionnaire and financial statement.
   2. Adopt and apply a uniform system of rating bidders based on the completed questionnaires and financial statements. (PCC Section 20111.6)
3. Requires the questionnaire, financial statement and the uniform system of rating bidders to cover, at a minimum, the issues covered by the standardized questionnaire and model guidelines for rating bidders developed by the Department of Industrial Relations. (PCC Section 20111.6)
4. Authorizes the governing board of a school district to establish a process to prequalify a person, firm, or corporation on a quarterly or annual basis. Specifies that a prequalification shall be valid for one calendar year following the date of initial prequalification. (PCC Section 20111.6)
5. Requires the governing board of a school district to competitively bid and award to the lowest bidder contracts involving the following:
   1. An expenditure of $50,000 or more for the purchase of equipment, materials, or supplies, services (except for construction services), and repairs.
   2. An expenditure of $15,000 or more for a public contract project defined as construction, reconstruction, erection, alteration, renovation, improvement, demolition, repair, painting or repainting of any publicly owned, leased, or operated facility. (PCC Sections 20111 and 22002)
6. Establishes the Local Agency Public Construction Act, which authorizes a public entity to establish a prequalification process and requires the Department of Industrial Relations, in collaboration with affected agencies and interested parties, to develop model guidelines for rating bidders, and drafting a standardized questionnaire that may be used by public entities. (PCC 20100 et seq.)
7. Establishes the Leroy F. Greene School Facilities Act of 1998 and requires the State Allocation Board (SAB) 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. (Education Code 17070.35)

ANALYSIS

This bill expands the requirement of general contractors and specified subcontractors to complete and submit a prequalification questionnaire and financial statement prior to bidding on school construction projects to include projects using state General Fund resources.

STAFF COMMENTS

1. Need for the bill. According to the author, “No parent should ever have to worry about their children’s well-being when they go off to school. As such, we must ensure that our students are learning in a safe environment, which obviously includes the buildings where classrooms are located. In 2020 at Lynwood High School, in my district, a portion of a three-story classroom building collapsed due to structural failures caused by poor construction practices. Thankfully – and only due to the COVID pandemic – no one was present when the school collapsed, but we must take steps to guard against any harm coming to our students and school staff.

AB 1433 is one such step. It will make certain that school construction projects, funded by General Fund dollars, utilize prequalified contractors who provide detailed information regarding their experience, quality, and skill. Current law applies these standards to construction projects funded by state school facility bond funds, but not the General Fund. This bill will require that, regardless of the state funding source, trustworthy contractors are working on school facility projects. By doing so, we can help guarantee that incidents like the one at Lynnwood High School, never happen again.”

1. Public project competitive bidding. Under current law, school districts are required to competitively bid any public works contract over $15,000 and award the contract to the lowest responsible bidder. Alternative methods for awarding contracts include: (1) design-build, with a school district issuing a request for proposal for both the design and construction of projects; (2) best value, allowing school districts to consider factors other than cost; and (3) job order contracting, based on prices for specific construction tasks.
2. Prequalification process for prospective bidders. In 2012, AB 1565 (Fuentes), Chapter 808, Statutes of 2012, established a five-year pilot requiring school districts using state bond funds must establish a prequalification process requiring prospective bidders for public works contracts of $1 million or more to complete a standardized questionnaire and submit financial statements. In 2018, AB 2031 (O’Donnell), Chapter 534, Statutes of 2018, removed the sunset on this requirement, which is intended to mitigate the risk of school districts entering into contracts with substandard companies.

The questionnaire is provided by school districts, and may require contractors to provide detailed information regarding (1) the company’s financial status, including whether the company has been in bankruptcy or involved in a civil lawsuit; (2) licensing information; (3) prior public contracting experience; (4) whether the contractor has been involved or been found to have violated any federal, state or local laws; and (5) whether the contractor has violated any labor and health and safety laws.

Since the enactment of prequalification for state bond funded School Facility Program projects, several other contracting methods have also incorporated a prequalification requirement, including lease-leaseback, design- build, and job order contracting.

1. The School Facility Program was recently infused with state General Fund resources. The Kindergarten through Community College Public Education Facilities Bond Act of 2016 (Proposition 51), approved by voters in November 2016, authorized $7 billion in state General Obligation bonds to support K-12 school facilities construction. These funds support new construction, modernization, retrofitting, career technical education, and charter school facility projects. The 2022-23 Budget allocates the remaining Proposition 51 bond funds—approximately $1.4 billion—to support school construction projects and provides $1.3 billion one-time General Fund with 2021-22 funds, approximately $2.1 billion one-time General Fund in 2023-24 and $875 million one-time General Fund in 2024-25 to support new construction and modernization projects through the School Facility Program. Additionally, $250 million one-time General Fund in 2021-22 is provided to support a school facility project in the Lynwood Unified School District.

By expanding existing prequalification requirements to projects funded with state General Fund resources, this bill ensures school construction projects built under the state School Facility Program will be subject to the same bidding requirements, regardless of their funding source.

SUPPORT

None received

OPPOSITION

None received

-- END --

Date of Hearing: May 3, 2023

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Chris Holden, Chair

ABPCA Bill Id:AB 1433

Author:(Mike Fong) – As Amended Ver:April 17, 2023

Urgency: No State Mandated Local Program: No Reimbursable: No

SUMMARY:

This bill authorizes a substitute teacher to serve in a teaching assignment up to 60 days during the 2023-24 school year.

Specifically, this bill authorizes, until July 1, 2024, any holder of a credential or permit issued by the Commission on Teacher Credentialing (CTC) that authorizes the holder to substitute teach in a general, special, or career technical education assignment to serve in a substitute teaching assignment for up to 60 cumulative days for any one assignment.

FISCAL EFFECT:

No costs to CTC to implement.

COMMENTS:

1. Purpose. According to the author:

California schools continue to grapple with unprecedented staffing shortages. The teacher shortage is particularly acute at schools serving high need students. In recognition of this crisis, the Legislature provided flexibility to schools to allow a substitute to teach in one classroom for up to 60 days. Absent a sunset extension, the law will limit the time a substitute teacher can serve in a single classroom to 30 days, contributing to a revolving door of classroom instability. Schools need this continued flexibility to ensure classrooms remain staffed when circumstances necessitate the use of a substitute.

1. Background. Current law establishes the Emergency 30-Day Substitute Teaching Permit at CTC. The permit authorizes the holder to serve as a substitute teacher for up to 30 days for any one teacher during the school year. The permit is valid for one year. To earn the permit, an individual must, (a) provide official transcripts showing the conferral of a baccalaureate or higher degree from a regionally accredited college or university; (b) fulfill a basic skills proficiency requirement; (c) complete an application and provide a Live Scan receipt; and (d) pay application processing fees.

SB 1397 (Borgeas), Chapter 335, Statutes of 2022, waives until July 1, 2024, the basic skills proficiency requirement for the issuance of an emergency 30-day substitute teaching permit.

AB 181 (Committee on Budget), Chapter 52 of the Statutes of 2022, authorizes, until July 1, 2023, a substitute teacher to teach in a general, special, or career technical education assignment for up to 60 cumulative days for any one assignment.

This bill extends the existing authorization for a substitute teacher to teach in one classroom for up to 60 days, until July 1, 2024.

Analysis Prepared by: Natasha Collins / APPR. / (916) 319-2081

Date of Hearing: April 12, 2023

ASSEMBLY COMMITTEE ON EDUCATION

Al Muratsuchi, Chair

ABPCA Bill Id:AB 1433 (

Author:Mike Fong) – As Amended Ver:March 22, 2023

SUBJECT: Substitute teachers: days of service

SUMMARY: Authorizes substitute teachers to serve in a teaching assignment up to 60 days during the 2023-24 school year. Specifically, this bill:

1. Authorizes, until July 1, 2024, any holder of a credential or permit issued by the Commission on Teacher Credentialing (CTC) that authorizes the holder to substitute teach in a general, special, or career technical education assignment to serve in a substitute teaching assignment aligned with their authorization, including for staff vacancies, for up to 60 cumulative days for any one assignment.
2. States that nothing in this bill shall preclude a local educational agency (LEA) from the requirement to make reasonable efforts to recruit a fully prepared teacher for the assignment.

EXISTING LAW:

1. Establishes the Emergency 30-Day Substitute Teaching Permit, which authorizes the holder to serve as a day-to-day substitute teacher in any classroom, including preschool, kindergarten, and grades 1-12 inclusive, or in classes organized primarily for adults. The holder may serve as a substitute for no more than 30 days for any one teacher during the school year, except in a special education classroom, where the holder may serve for no more than 20 days for any one teacher during the school year. This permit is valid for one year and is renewable. Applicants must hold a baccalaureate or higher degree from a regionally accredited college or university and pass the basic skills requirement and a fingerprint clearance. (Education Code (EC) 44300 and Title 5, California Code of Regulations, Section 80025)
2. Authorizes holders of 30-day emergency substitute teaching permits to serve as substitutes for credentialed special education teachers for not more than 20 cumulative days for each special education teacher absent during the school year.  Upon application by the district or COE, the Superintendent of Public Instruction may approve an extension of 20 schooldays. (EC 56061)
3. Authorizes an Emergency Career Substitute Teaching Permit holder to serve as a substitute in any classroom; preschool, kindergarten and grades 1-12, inclusive; or in classes organized primarily for adults. Prohibits the holder from serving as a substitute for more than 60 days for any one teacher during the school year. Restricts the permit to the schools operated by the employing agency that requested the permit. States that the permit is valid for no less than one year and expires one calendar year from the first day of the month immediately following the date of issuance. (CCR Title 5, 80025.1)
4. Authorizes the CTC to approve a school district request for the assignment of an individual if the district has certified by an annual resolution of the governing board that it has made reasonable efforts to recruit a fully prepared teacher for the assignment. States that if a suitable individual who meets the priorities is not available to the school district, the district, as a last resort, may request approval for the assignment of a person who does not meet that criteria. (EC 44225.7)

FISCAL EFFECT: Unknown

COMMENTS:

Need for the bill. According to the author, “California schools continue to grapple with unprecedented staffing shortages. The teacher shortage is particularly acute at schools serving high need students. In recognition of this crisis, the Legislature provided flexibility to schools to allow a substitute to teach in one classroom for up to 60 days. Absent a sunset extension, the law will limit the time a substitute teacher can serve in a single classroom to 30 days, contributing to a revolving door of classroom instability. Schools need this continued flexibility to ensure classrooms remain staffed when circumstances necessitate the use of a substitute.”

What does this bill do? This bill extends the existing authorization for a substitute teacher to teach in one classroom for up to 60 days, until July 1, 2024. The 2022 Budget Act provides this same authorization until July 1, 2023. Without this bill, the sunset will expire at the end of this school year.

Requirements for holding a substitute teacher permit. The current requirements to earn a substitute teacher permit include:

1. Official transcripts showing the conferral of a baccalaureate or higher degree from a regionally accredited college or university;
2. Basic skills requirement;
3. Completed application and a completed Live Scan receipt; and
4. Application processing fees.

California data on issuance of substitute permits. The graph below shows the number of new 30-day substitute teaching permits issued. The number of substitute teaching permits issued has dropped more than 25% since 2016-17.

(Source: CTC)

Teacher shortages increase the demand for substitute teachers. Teacher shortages have increased the need and demand for substitute teachers. New strategies for substitute recruitment and retention are rapidly changing. According to a report and survey conducted by EdWeek Research Center, The Substitute Teacher Gap: Recruitment and Retention Challenges in the Age of Covid-19, short-term substitute teaching positions have been difficult to fill because of low wages, lack of benefits, and a requirement to hold a bachelor’s degree. This report found that on average about 250,000 positions are left to be filled daily with substitute teachers with only 54% total absences covered with substitute teachers filling in the vacancies. The report also found that 71% of administrators and school board members predict that the demand for substitute teachers will increase in the next five years. The report interviewed a California school board member who stated, “Many of those people that we do recruit to become substitutes end up getting hired as fulltime teachers, which is great; however, then we lose them on the substitute teacher roles.”

Substitute teacher compensation. According to the Bureau of Labor Statistics, the mean annual wage for a short-term substitute teacher in the U.S. as of 2020 was $36,090. The Education Commission of the States reports that providing competitive compensation can help states improve the substitute teacher pool by attracting more candidates. In an EdWeek Research Center survey, 65% of school members and administrators say a pay increase would improve the quality of substitute teaching in their districts. Respondents said that on average a minimum 26% pay increase would increase the quality of the substitute; however, only 19% of respondents said their substitute teacher rates increased.

Behind higher pay, professional development is the factor second most likely to improve substitute teaching. According to the EdWeek Research Survey, 44% of school board members and administrators say they provide no professional development to substitute teachers. Only 11% of respondents offered training on classroom management. As the demand for substitute teachers increases with teacher absences, the need for training may become even more urgent. Some school districts across the nation are creating new programs for substitute teachers that incorporate and emphasize professional development. One example of such program is the Central Falls Teaching Fellowship in Central Falls, Rhode Island. The program requires the fellows to commit to a year-long substitute teaching assignment within a single entity in return for daily pay. Professional development includes four days of training prior to the start of the school year and monthly activities. The fellowship program reports that 70-80% of the fellows complete the program’s year-long commitment and provides the school district a reliable source of substitute teachers.

Recruitment and retention. According to the EdWeek Research Survey, close to half of respondents, 47%, said their district does not make any effort to recruit or retain substitute teachers. According to a 2022 report by Education Finance and Policy, More Than Shortages: The Unequal Distribution of Substitute Teaching, disadvantaged schools had lower substitute coverage rates. Higher-needs schools are more likely to expect non-covered teacher absences than other schools. The study also found that:

• Substitute teachers consistently preferred one subset of schools while avoiding another subset. The least-preferred schools were middle schools that have significantly lower average achievement, a higher concentration of Black and Hispanic students, and higher suspension rates.
• The number of times a school was identified as a most- or least-preferred school accounted for a large share (40% to 50%) of the cross-school variation in substitute coverage rates.
• Lastly, substitute teachers often cited student behavior as an important factor in their determination of certain schools as least preferable, but mentioned a wide range of factors that can make a school desirable, such as the colleagues and familiarity with a school.

Already weak teaching pipeline further damaged by COVID-19 education disruptions. A March 2021 report by the Learning Policy Institute (LPI) raised concerns about the effects of the COVID-19 pandemic on the teacher shortage in California:

• Teacher shortages remain a critical problem. Most districts have found teachers to be in short supply, especially for math, science, special education, and bilingual education. Most districts are filling hiring needs with teachers on substandard credentials and permits, reflecting a statewide trend of increasing reliance on underprepared teachers.
• Teacher pipeline problems are exacerbated by teacher testing policies and inadequate financial aid for completing preparation. Many districts attributed shortages to having a limited pool of fully credentialed applicants, with more than half reporting that testing requirements and lack of financial support for teacher education pose barriers to entry into teaching.
• Teacher workload and burnout are major concerns. The transition to online and hybrid learning models has had a steep learning curve and poses ongoing challenges that have been a primary contributor to some teachers’ decisions to retire earlier than previously planned. With district leaders estimating that teacher workloads have at least doubled, many were concerned that the stressors of managing the challenges of the pandemic on top of the challenges of an increased workload could lead to teacher burnout and increased turnover rates.
• Growing retirements and resignations further reduce supply. In some districts, retirements and resignations are contributing to shortages, while in others, these retirements and resignations offset the need for anticipated layoffs due to expected budget cuts this school year. District leaders anticipate higher retirement rates next year, which could exacerbate teacher shortages.

Substitute teacher requirements in other states. Due to the acute need to increase the substitute teacher pool, some states have changed the academic requirements needed to earn a substitute teaching permit. For example, Missouri and Oregon temporarily removed their requirement for a bachelor’s degree to serve as a substitute teacher during the pandemic.

Recommended Committee amendment. Staff recommends the bill be amended to clarify that schools shall follow the hiring provisions in Section 44225.7.

Related legislation. AB 181 (Committee on Budget), Chapter 52 of the Statutes of 2022, authorizes, until July 1, 2023, a substitute to teach in a general, special, or career technical education assignment for up to 60 cumulative days for any one assignment; and states that nothing shall preclude a LEA from following the hiring provisions outlined in Section 44225.7 of the Education Code.

SB 1397 (Borgeas), Chapter 335, Statutes of 2022 waives until July 1, 2024, the basic skills proficiency requirement for the issuance of an emergency 30-day substitute teaching permit.

AB 1895 (E. Garcia) of the 2021-22 Session would have established the Substitute Teacher Support Grant Program, under the administration of the CDE, and appropriates $100 million to provide one-time competitive grants to LEAs to develop and implement new, or expand existing, locally identified solutions that address local substitute teacher shortages or needs for professional development for substitute teachers. This bill was held in the Assembly Appropriations Committee.

AB 1893 (Cunningham) of the 2021-22 Session, would have required, until July 1, 2024, the CTC to waive the basic skills proficiency requirement for the issuance of an emergency 30-day substitute teaching permit. This bill was vetoed by the Governor with the following message:

While I agree with the aim of the proposal, this bill inadvertently overrides an unrelated provision of the final 2022-23 budget agreement contained in Assembly Bill 210, which amended the same code section. This bill seeks, until July 1, 2024, to allow the Commission on Teacher Credentialing to waive the basic skills proficiency requirement for purposes of issuing an Emergency 30-Day Substitute Teaching Permit. I welcome another policy vehicle for this proposal that avoids this technical issue.

AB 1876 (Seyarto), Chapter 113, Statutes of 2022, requires the CTC, when issuing an initial emergency career substitute teaching permit, to accept employment verification for the previous consecutive three year period from one or more California school districts participating in a consortium in determining the accumulated work days per year.

AB 1119 (Eduardo Garcia) of the 2019-20 Session would have required the CTC to establish a Teacher and Substitute Shortage Workgroup to identify steps that can be taken to improve both the substitute pool and the qualified teacher workforce in small school districts, defined as a school district with fewer than 2,501 units of average daily attendance. This bill was held in the Assembly Appropriations Committee.

AB 3149 (Limon) of the 2017-18 Session would have would required the CTC, through a stakeholder process, to determine whether there is a need to provide a person who holds an Emergency 30-Day Substitute Teaching Permit, who is otherwise qualified to receive a Teaching Permit for Statutory Leave, expanded pathways for meeting the requirements of the Teaching Permit for Statutory Leave, and to make regulatory changes as necessary, on or before July 1, 2019. This bill was held on the Senate Floor.

REGISTERED SUPPORT / OPPOSITION:

Support

None on file

Opposition

None on file

Analysis Prepared by: Chelsea Kelley / ED. / (916) 319-2087