Swcharzenegger vetoes university transparency bill [Archive]

ilbegone

10-17-2010, 06:36 AM

Schwarzenegger Vetoes SB 330 Transparency Bill

Sacramento – Choosing special interests and ambiguity over much-needed reform in California’s floundering colleges and universities, Gov. Arnold Schwarzenegger has vetoed Senator Leland Yee’s (D-SF) SB 330.

SB 330 would have required foundations and other auxiliary non-profits connected with the state's public universities and colleges to make their handling of money and other operations more transparent and accountable to the public.

“We are disappointed that the misinformation campaign orchestrated by the CSU and UC administrations led to this important legislation being vetoed. Both they, and the Governor, are out of touch with the public’s demand for greater transparency in foundations and auxiliaries that are so closely tied to our public universities,” said CFA President Lillian Taiz, a professor of History at Cal State Los Angeles.

Taiz continued, “This veto means that our public universities can continue to conceal the abuses that have resulted in so many scandals over the past few years. It is an especially sad day for our students who we believe would have benefited most from the proper oversight of this money”

CSU Chancellor Charles Reed and executives in the UC system worked aggressively through back channels to convince the Governor to veto the bill, falsely claiming it would result in a ‘chilling effect’ on private donations. In fact, the bill allows for donors to remain anonymous unless they receive something in return of more than $500 in value. Moreover, at the University of Iowa, donations increased significantly after a similar law was enacted.

Yee Takes Governor to Task Over Veto

The bill’s author, Senator Leland Yee (D-San Francisco), referred to the Governor’s action as “completely hypocritical” and referred to Schwarzenegger’s tenure as a “failure” on issues of open government.

“For a Governor who wanted to blow up the boxes and whose rhetoric is filled with platitudes of open government, it is a disgrace and completely hypocritical to then veto legislation to bring real transparency and accountability to our public universities,” said Yee.

“The Governor, like his ivory tower counterparts within the UC and CSU administrations, failed California taxpayers and students by vetoing this sunshine legislation. He has secured his legacy as Governor – a failure when it came to open government.”

“It is appalling, especially after the recent outrage regarding the City of Bell, that the Governor would ensure that scandals continue to plague our public universities,” said Yee.

“His veto allows these public institutions to continue to hide billions of dollars without any accountability. He ignored the facts – these auxiliaries are fully staffed by public employees; they often administer public funds; the donors were provided anonymity; and that secrecy breeds corruption, not more donations.”

Background on SB 330

Senate Bill (SB) 330 would have required foundations and other auxiliary non-profits connected with the state's public universities and colleges to make their handling of money and other operations more transparent and accountable to the public. The bill was authored by Senator Leland Yee (D-San Francisco).

In the California State University alone, the money hidden in these foundations is huge.

By the CSU Chancellor's Office's own admission, 20% of the public university’s operating budget – or $1.34 billion – is funded by the hidden budgets of its campus and system auxiliaries.

Several well-publicized scandals at CSU and community colleges – including CSU Stanislaus, Sonoma, Fresno and Sacramento State as well as San Francisco City College – have made it abundantly clear that reform is needed.

The questionable practices of these auxiliaries have prompted a series of investigations by the state Attorney General, an inspection by the State Auditor, and intense media scrutiny.

While the governor vetoed a similar bill last year, saying it could scare off donors and volunteers by compromising their privacy, CFA and Yee amended SB 330 to exempt most volunteers and donors who wish to remain anonymous, along with keeping donor lists and foundation research confidential.

The California Faculty Association and the California Newspaper Publishers Association co-sponsored SB 330. The bill drew outside support from groups as diverse as Cal-Aware and the California Taxpayers Association and received strong bi-partisan support in the legislature. Editorial boards from newspapers across the state had urged the governor to sign the bill including: the Los Angeles Times, San Jose Mercury News, San Francisco Chronicle, Sacramento Bee, Santa Rosa Press Democrat, Fresno Bee, Long Beach Press-Telegram and many others.

http://www.calfac.org/headline-special-edition/schwarzenegger-vetoes-sb-330-transparency-bill

ilbegone

10-17-2010, 06:51 AM

SB 330

Italicized text includes proposed additions to law or the previous version of the bill.
Struck text includes proposed deletions to law or the previous version of the bill.

(pdf version)
PASSED THE SENATE AUGUST 19, 2010
PASSED THE ASSEMBLY AUGUST 16, 2010
AMENDED IN ASSEMBLY AUGUST 9, 2010
AMENDED IN ASSEMBLY JUNE 7, 2010
AMENDED IN ASSEMBLY JUNE 3, 2010
AMENDED IN SENATE DECEMBER 15, 2009

INTRODUCED BY Senator Yee
(Coauthors: Senators Calderon, DeSaulnier, and Dutton)
(Coauthors: Assembly Members Beall, DeVore, Furutani, Nielsen,
Portantino, Silva, Torrico, and Tran)

FEBRUARY 25, 2009

An act to amend Sections 72670, 72670.5, and 89901 of, and to add
Section 92034 to, the Education Code, and to add Section 6254.30 to
the Government Code, relating to public records.

LEGISLATIVE COUNSEL'S DIGEST

SB 330, Yee. Public records: auxiliary organizations.
The California Public Records Act requires state and local
agencies to make their records available for public inspection and to
make copies available upon request and payment of a fee unless those
records are exempt from disclosure.

This bill would require specified entities to comply with the act,
but would not require these entities to disclose information
obtained in the process of soliciting potential donors that has
actual or potential independent economic value because it is not
generally known to the public or because the individuals can obtain
economic value from its disclosure or use.

This bill would specify that it is not the intent of the
Legislature to designate specified organizations as state agencies by
subjecting these organizations to the requirements of the act.
The bill would exempt from disclosure under the act the names,
addresses, and telephone numbers of persons who volunteer services or
donate to specified entities if those persons request anonymity.
However, the bill would provide that this exemption does not apply if
a volunteer or donor meets specified conditions.

This bill would also provide that it is the intent of the
Legislature to reject the court's interpretation of state law
regarding the application of the act to auxiliary organizations, such
as the CSU Fresno Association, at issue in California State
University, Fresno Assn., Inc. v. Superior Court (2001) 90
Cal.App.4th 810.

THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

SECTION 1. Section 72670 of the Education Code is amended to read:

72670. The governing board of a community college district may
establish auxiliary organizations for the purpose of providing
supportive services and specialized programs for the general benefit
of its college or colleges. As used in this article, "auxiliary
organization" may include, but is not limited to, the following
entities:

(a) Any entity in which any official of a community college
district participates as a director as part of his or her official
position.

(b) Any entity formed or operating pursuant to Article 4
(commencing with Section 76060) of Chapter 1 of Part 47.

(c) Any entity that operates a commercial service for the benefit
of a community college or district on a campus or other property of
the district.

(d) Any entity whose governing instrument provides in substance
both of the following:

(1) Its purpose is to promote or assist a community college or
district, or to receive gifts, property, and funds to be used for the
benefit of the community college or district or any person or
organization having an official relationship therewith.

(2) Any of its directors, governors, or trustees are either
appointed or nominated by, or subject to, the approval of the
governing board of the district, an official of the district, or
selected, ex officio, from the membership of the student body or the
faculty or the governing board or the administrative staff of the
district.

(e) Any entity that is designated as an auxiliary organization by
the district governing board.

(f) An entity described in subdivision (b), (d), or (e) shall
comply with Chapter 3.5 (commencing with Section 6250) of Division 7
of Title 1 of the Government Code.

(g) Nothing in Chapter 3.5 (commencing with Section 6250) of
Division 7 of Title 1 of the Government Code shall require an entity
described in this section to disclose information obtained in the
process of soliciting potential donors that has actual or potential
independent economic value because it is not generally known to the
public or because individuals can obtain economic value from its
disclosure or use.

(h) Nothing in this section shall require an entity described in
this section to disclose information that is exempt from disclosure
pursuant to Section 99040 of this code, Section 3426.1 of the Civil
Code, Section 1060 of the Evidence Code, or subdivision (k) of
Section 6254 of the Government Code.

SEC. 2. Section 72670.5 of the Education Code is amended to read:
72670.5. (a) The Board of Governors of the California Community
Colleges may establish auxiliary organizations for the purpose of
providing supportive services and specialized programs for the
general benefit of the mission of the California Community Colleges.

(b) As used in this article:

(1) "Auxiliary organization" may include, but is not limited to,
the following entities:

(A) Any entity whose governing instrument provides in substance
both of the following:

(i) That its purpose is to promote or assist the Board of
Governors of the California Community Colleges, or to receive gifts,
property, and funds to be used for the benefit of the Board of
Governors of the California Community Colleges or any person or
organization having an official relationship therewith.

(ii) That any of its directors, governors, or trustees are either
appointed or nominated by, or subject to, the approval of the Board
of Governors of the California Community Colleges or an official of
the California Community Colleges, or selected, ex officio, from the
membership of the Board of Governors or the administrative staff of
the California Community Colleges.

(B) Any entity that, exclusive of the foregoing subdivisions of
this section, is designated as an auxiliary organization by the Board
of Governors of the California Community Colleges.

(2) "District governing board" includes the Board of Governors of
the California Community Colleges, unless the context requires
otherwise.

(c) Any agreement between the Board of Governors of the California
Community Colleges and an auxiliary organization established
pursuant to this section shall provide for full reimbursement from
the auxiliary organization to the Board of Governors of the
California Community Colleges for any services performed by the
employees of the board under the direction of, or on behalf of, the
auxiliary organization.

(d) An entity described in paragraph (1) of subdivision (b) shall
comply with Chapter 3.5 (commencing with Section 6250) of Division 7
of Title 1 of the Government Code.

(e) Nothing in Chapter 3.5 (commencing with Section 6250) of
Division 7 of Title 1 of the Government Code shall require an entity
described in this section to disclose information obtained in the
process of soliciting potential donors that has actual or potential
independent economic value because it is not generally known to the
public or because individuals can obtain economic value from its
disclosure or use.

(f) It is not the intent of the Legislature in enacting
subdivision (d) to designate an organization described in paragraph
(1) of subdivision (b) as a state agency.

(g) Nothing in this section shall require an entity described in
this section to disclose information that is exempt from disclosure
pursuant to Section 99040 of this code, Section 3426.1 of the Civil
Code, Section 1060 of the Evidence Code, or subdivision (k) of
Section 6254 of the Government Code.

SEC. 3. Section 89901 of the Education Code is amended to read:
89901. As used in this article, the term "auxiliary organization"
includes the following entities:

(a) Any entity in which any official of the California State
University participates as a director as part of his or her official
position.

(b) Any entity formed or operating pursuant to Article 1
(commencing with Section 89300) of Chapter 3.

(c) Any entity that operates a commercial service for the benefit
of a campus of the California State University on a campus or other
property of the California State University.

(d) Any entity whose governing instrument provides in substance
both of the following:

(1) That its purpose is to promote or assist any campus of the
California State University, or to receive gifts, property, and funds
to be used for the benefit of such campus or any person or
organization having an official relationship therewith.

(2) That any of its directors, governors, or trustees are either
appointed or nominated by, or subject to, the approval of an official
of any campus of the California State University, or selected, ex
officio, from the membership of the student body or the faculty or
the administrative staff of campus.

(e) Any entity whose governing instrument provides in substance
both of the following:

(1) That its purpose is to promote or assist the trustees of the
California State University, or to receive gifts, property, and funds
to be used for the benefit of the trustees of the California State
University or any person or organization having an official
relationship therewith.

(2) That any of its directors, governors, or trustees are either
appointed or nominated by, or subject to, the approval of the
trustees or an official of the California State University, or
selected, ex officio, from the membership of the trustees or the
administrative staff of the California State University.

(f) Any entity that, exclusive of the foregoing subdivisions of
this section, is designated as an auxiliary organization by the
trustees.

(g) An entity described in subdivision (b), (d), (e), or (f) shall
comply with Chapter 3.5 (commencing with Section 6250) of Division 7
of Title 1 of the Government Code.

(h) Nothing in Chapter 3.5 (commencing with Section 6250) of
Division 7 of Title 1 of the Government Code shall require an entity
described in this section to disclose information obtained in the
process of soliciting potential donors that has actual or potential
independent economic value because it is not generally known to the
public or because individuals can obtain economic value from its
disclosure or use.

(i) It is not the intent of the Legislature in enacting
subdivision (g) to designate an organization described in subdivision
(b), (d), (e), or (f) as a state agency.

(j) Nothing in this section shall require an entity described in
this section to disclose information that is exempt from disclosure
pursuant to Section 99040 of this code, Section 3426.1 of the Civil
Code, Section 1060 of the Evidence Code, or subdivision (k) of
Section 6254 of the Government Code.

SEC. 4. Section 92034 is added to the Education Code, to read:
92034. As used in this article, the term "auxiliary organization"
includes the following entities:

(a) An entity in which an official of the University of California
participates as a director as part of his or her official duties.

(b) An entity that operates a commercial service for the benefit
of a campus of the University of California on a campus or other
property of the University of California.

(c) An entity whose governing instrument provides in substance
both of the following:

(1) That its purpose is to promote or assist any campus of the
University of California, or to receive gifts, property, and funds to
be used for the benefit of that campus or any person or organization
having an official relationship therewith.

(2) That any of its directors, governors, or trustees are either
appointed or nominated by, or subject to the approval of, an official
of any campus of the University of California, or serve, ex officio,
from the membership of the student body or the faculty or the
administrative staff of a campus.

(d) Any entity whose governing instrument provides in substance
both of the following:

(1) That its purpose is to promote or assist the Regents of the
University of California, or to receive gifts, property, and funds to
be used for the benefit of the Regents of the University of
California, or any person or organization having an official
relationship therewith.

(2) That any of its directors, governors, or trustees are either
appointed or nominated by, or subject to, the approval of the Regents
or an official of the University of California, or serve, ex
officio, from the membership of the regents or the administrative
staff of the University of California.

(e) An entity that is designated by the regents as an auxiliary
organization of the University of California.

(f) An entity described in subdivision (c), (d), or (e) shall
comply with Chapter 3.5 (commencing with Section 6250) of Division 7
of Title 1 of the Government Code.

(g) Nothing in Chapter 3.5 (commencing with Section 6250) of
Division 7 of Title 1 of the Government Code shall require an entity
described in this section to disclose information obtained in the
process of soliciting potential donors that has actual or potential
independent economic value because it is not generally known to the
public or because individuals can obtain economic value from its
disclosure or use.

(h) It is not the intent of the Legislature in enacting
subdivision (f) to designate an organization described in subdivision
(c), (d), or (e) as a state agency.

(i) Nothing in this section shall require an entity described in
this section to disclose information that is exempt from disclosure
pursuant to Section 99040 of this code, Section 3426.1 of the Civil
Code, Section 1060 of the Evidence Code, or subdivision (k) of
Section 6254 of the Government Code.

SEC. 5. Section 6254.30 is added to the Government Code, to read:
6254.30. (a) Nothing in this chapter shall be construed to
require disclosure of the name, address, or telephone number of a
person who volunteers his or her services or donates to an entity
described in paragraph (1) of subdivision (b) of Section 72670.5,
Section 72670, 89901, or 92034 of the Education Code, if that person
requests anonymity.

(b) Subdivision (a) does not apply if a volunteer or donor, in a
quid pro quo arrangement, receives anything that has a value of five
hundred dollars ($500) or greater in exchange for the services or
donation.

(c) Subdivision (a) does not apply if a volunteer or donor is a
member of the governing board of an entity described in paragraph (1)
of subdivision (b) of Section 72670.5 of, or Section 72670, 89901,
or 92034 of, the Education Code.

(d) Subdivision (a) does not apply if a volunteer or donor engages
in direct communication for the purpose of influencing the
administrative or academic action within the California Community
Colleges, the California State University, or the University of
California.

SEC. 6. It is the intent of the Legislature in enacting this act
to construe and clarify the meaning and effect of existing law and to
reject the court's interpretation of state law regarding the
application of the California Public Records Act (Chapter 3.5
(commencing with Section 6250) of Division 7 of Title 1 of the
Government Code) to auxiliary organizations, such as the CSU Fresno
Association, at issue in California State University, Fresno Assn.,
Inc. v. Superior Court (2001) 90 Cal.App.4th 810.

SEC. 7. The Legislature finds and declares that Section 6 of this
act imposes a limitation on the public's right of access to writings
of public officials and agencies within the meaning of Section 3 of
Article I of the California Constitution. Pursuant to that
constitutional provision, the Legislature makes the following finding
to demonstrate the interest protected by this limitation and the
need for protecting that interest: The Legislature finds and declares
that in order to protect the privacy of individuals who donate to
specified entities and request anonymity, it is necessary to exempt
those individuals' names from disclosure.

http://www.aroundthecapitol.com/billtrack/text.html?bvid=20090SB33094ENR