This summary covers legislation pertaining to business matters affecting K-12 and community college districts. Unless otherwise indicated, legislation became effective January 1, 1996.
The information included in this summary was generously provided by:Schools' Legal Counsel
Office of the Alameda County Superintendent of Schools
Ralph D. Stern - General Counsel
313 West Winton Avenue, Suite 372
Hayward, CA 94544-1198
(510) 670-4135 FAX: (510) 670-4149Personnel
New! Legislative Update I
Authority and procedures for making assignment outside of credential modified
Board member must abstain on matters uniqely affecting a relative
Credential must be denied or revoked for person found to be criminally insane
Damages allowed for wrongful termination arising from fraudulent claims
Minimum standards set for full-time service credit for STRS
School district employee prohibited from being on governing board
STRS retiree earnings cap modified for AB1200
STRS to establish special retirement plan for part-time employees
Subpoenaed employment records subject to consumer notice requirement
Unsatisfactory performance substituted for incompetence as grounds for dismissal
Various merit system procedures revisedBusiness
AB1200 revised
Authority to use non-field act portable extended to September 30, 1997
Changes in district boundaries
Community college student body funds required to be in insured accounts
Competitive bid requirements modified
District may select escrow agent to hold securities in public works project
Emergency loans
Employing school crossing guards
Expedited plan check for facilities destroyed by disaster
Greater specificity required in audit reports
Hold harmless for loss of ADA due to base closure liberalized
Joint venture constuction projects authorized
Legislation concerning political issues and limits for board members
New or increased general tax or assessment requires public hearing
Redevelopment
School breakfast programStudents
Definition of truancy revised
Intradistrict open enrollment criteria revised
Issuance of subpoenas in student discipline cases
Student expulsion
Alternative placement of expelled students
Period of time for which person may be excluded from school campus increased
Principal who willfully fails to report student criminal conduct subject to $500 fine
Prohibition against obtaining information concerning personal beliefs or practices
K-12 school district authorized to establish community day schools
Suspension of student expulsion order
One year expulsion required for possession of firearm
Dirk and dagger definedDeveloper Fees
Developer fee cap and bid limit both increase
Increase in developer fees authorizedMiscellaneous
Solicitation of students by volunteer dentist prohibited
Person who enters school bus to commit a crime guilty of a misdemeanor
County board of education may place term limit proposal on ballot
Solicitation of campaign contribution from employees by superintendent candidates
Possession of a gun near a school is a crime
Topic: Personnel Issues
Board members required to abstain on matters uniquely affecting a relative
AB 34, Chapter 22 (E.C. Sec. 35107)Requires a governing board member of a K-12 district to abstain from voting on personnel matters that uniquely affect a relative but may vote on collective bargaining agreements and personnel matters affecting a class of employees. "Relative" means a person related by blood or affinity within the third degree or who has an adoptive relationship.
Credential must be denied or revoked for person found to be criminally insane
AB 1029, Chapter 140 (E.C. Sec. 44346 and 44425.5)Requires the Commission on Teacher Credentialing to deny a credential to an individual found to have been insane in a criminal proceeding unless the Commission finds that the person has been rehabilitated for at least five years. A credential may not be reinstated if it is revoked following a finding of insanity for specific drug and sex offenses, and murder.
| Index of Legislation |
Minimum standards set for full-time service credit for STRS
AB 1122, Chapter 390 (E.C. Secs. 22106.5, 22112.5, 22115, 22116, 22138.5, 22138.6, 22175, 22701 and 22702)Minimum standards for full-time service credit are established as follows:
K-12 districts
- Non-administrators: 175 days per year or 1,050 hours
- Administrators: 190 days or 1,250 hours
- County Office Administrators: 215 days or 1,720 including holidays
Community Colleges
- Non-administrators: 30 teaching units of not less than 35 weeks or 175 days
- Administrators: 190 days or 1,520 hours
- District Office Administrators: 215 days or 1,720 hours including holidays
Adult Education
- 30 hours for 35 weeks per year or 1,050 hours
These standards become effective on July 1, 1996.
| Index of Legislation | Prohibition against school district employee being elected or appointed to governing board extended to other public agencies
AB 236, Chapter 237 (Govt. Code Secs. 53227, 53227.1, and 53227.2)Extends to other public agencies the provisions of Education Code Sections 35017 and 72103 which prohibit employees of school or community college district from serving on governing board.
Subpoenaed employment records subject to consumer notice requirement
AB 617, Chapter 299 (Code of Civil Procedure Sec. 1985.6)Person seeking production by subpoena of employment records from current or former employer must first give notice to the employee and furnish a copy to the employer with the subpoena.
Unsatisfactory performance substituted for incompetence as grounds for dismissal of K-12 certificated employee
AB 729, Chapter 392 ) E. C. Secs. 44662, 44932, 44934 and 44938)"Incompetence" is deleted as a ground for dismissal and replaced with "unsatisfactory performance".
| Index of Legislation | STRS retiree earnings cap modified for AB1200 administrators/trustees vacancies in specialized administrative positions
AB 948, Chapter 394 (E.C. Secs. 22119.5, 22114, 22115, 24214 and 22216)Eliminates the $17,400 annual cap on STRS retirees' earnings for administrators or trustees appointed by State Superintendent or County Superintendent under AB 1200 for up to two years. Modifies the $17,400 annual cap for individuals employed in an emergency situation to fill a vacant administrative position requiring highly specialized skills for up to one-half of the full-time salary for the position. An exemption for a retiree serving in an emergency position shall be granted by STRS if: (1) the recruitment process to fill the position will extend over several months; (2) the employment is reported at a public meeting; and (3) the employer submits the required substantiation to STRS. An individual who received the Golden Handshake is not eligible for an exemption.
This was urgency legislation which became effective on July 1, 1995 and sunsets on July 1, 2000.| Index of Legislation | STRS to establish special retirement plan for part-time employees
AB 1298, Chapter 592 (E.C.Secs. 22119.5, 22146, 22502, 22503, 22506 and 22600 et seq.)Establishes Cash Balance Plan, optional with employers, for part-time certificated employees. Rates are lower than social security or current STRS plan.
Various merit system procedures revised
SB 1054, Chapter 652 (E. C. Secs. 45105.1, 45183, 45253, 45257, 45271, 45272, 45273, 45274, 45282, 45283, 45292 and 45300)The substantive portion of this legislation:
1. Permits waiver, by agreement of district and exclusive representative, of requirement that temporary assignments of less than 20 days be made on the basis of seniority within the class.
2. Provides for hearing by administrative law judge if County Superintendent rejects Commission budget.
3. Expands circumstances under which a person holding a certificated position deemed to be classified may become part of the classified service without examination.
4. Deletes reference to architectural and engineering firms in provisions pertaining to professional experts.
5. Revises procedures for area eligibility lists in districts over 200 square miles.
6. Permits continuous examination of applications for open as well as promotional examinations.
7. Eligibility list may be extended for up to two years instead of one year.| Index of Legislation | Authority and procedures for making assignment outside of credential modified
AB 1124, Chapter 927 (E.C. Secs. 44258.3 and 44258.7)Current law which sunsets January 1, 1996, permits the governing board to assign a teacher with a credential authorizing service in a self contained classroom to departmentalized classes in grades K-8 with the teacher's consent. This legislation extends this authority to grades K-12 and changes the procedures for verifying subject matter knowledge. Annual review of teaching assignments is eliminated; however, the Commission on Teacher Credentialing may suspend district's authority to assign outside of credential authorization if district abuses authority. Also authority to teach in an area of special skills or preparation for 40% of a full-time assignment is modified by eliminating the reference to 40% and authorizing the teaching of elective courses. Elective courses are defined as courses other than English, mathematics, science or social studies.
Court allows recovery for wrongful termination arising from fraudulent inducement to accept employment
Andrew Lazar v. Superior Court of Los Angeles County, Rykoff-Sexton, Inc.
(96 C.D.O.S. 645)]In this private sector case, the employer persuaded a successful East Coast executive working for a family-owned company to relocate to California. During the recruitment process, the employee was assured that the job would be secure, that he would receive significant pay increases and that he would continue to be employed as long as he properly performed his job and achieved appropriate goals. When the employee asked for a written employment contract, he was told that such contracts were unnecessary because "our word is our bond."
The employee performed in an exemplary manner but was terminated. The facts at the trial court established that at the time the employer made the representations which induced the employee to relocate, it knew them to be false. The employee sued for wrongful termination claiming tort damages. The employer, relying on the California Supreme Court's decision in Foley v. Interactive Data Corp. (1988) 47 Cal.3d 654, claimed that California does not permit the recovery of tort damages for wrongful termination. More specifically, the Court in Foley held that the fact that there is an implied covenant of good faith and fair dealing implied in every California contract does not, by itself, permit the recovery of tort damages for a breach of contract. In the present case, the Court limited the impact of the Foley decision by holding that it does not limit damages in suits claiming fraudulent inducement to contract for employment.
The impact of this case is likely to be an increase in successful lawsuits claiming damages as a result of an employer making fraudulent representations resulting in an employee accepting a position he or she would not otherwise have accepted.| Index of Legislation | Back to FCMAT Library |
Topic: Business Issues
School breakfast program
SB59, Chapter 1 (E.C.Sec 49550.3)Current law requires the State Department of Education to provide additional information and financial assistance in connection with the school breakfast program to districts in which 40 percent or more of the students are eligible for free or reduced-price meals. This legislation changes the percentage to 30 percent.
Expedited plan check for K-12 and community college facilities destroyed by disaster
SB6, Chapter 7 ix) (E. Sections 39140.6 and 81130.6)This legislation, which became effective on October 8, 1995, requires that any plan review or approval required for replacement of facilities due to fire, earthquake, flood or other disaster shall be completed within 60 days excluding weekends and holidays.
| Index of Legislation | Emergency loans
AB112, Chapter 50 (E.C. 41326.1))District's State Administrator must consider input at least monthly from one or more of the following groups: (1) the governing board; (2) an advisory council; (3) the PTA; and/or community representatives. This is urgency legislation which became effective on July 3, 1995.
Redevelopment
AB1424, Chapter 141 (H.&S. Code Sec. 33607.5)The Community Redevelopment Law Reform Act of 1993 provided that specified portions of the tax increment to be received were to be allocated to K-12 schools, community colleges, county superintendents and for special education. For K-12 districts 43.9 percent of the increment was to be considered property taxes.
This legislation: (1) changes that amount to 43.3 percent and (2) requires that only the non-property tax portion of the allocation be reduced by the full amount of any other mitigation payments made by the redevelopment agency to the district. The intent of these changes is to reduce the State's contribution to the funding of the district's revenue limit.| Index of Legislation | Community college student body funds required to be deposited in insured accounts
SB 4, Chapter 201 (E.C. Section 76063)This legislation revises the options available for the deposit of community college student body funds. The principal change is to require that the funds be deposited in insured accounts.
New or increased general tax or assessment requires public hearing
SB725, Chapter 258 (Govt Code Sec. 54954.6)The words "local agency" are substituted for "city, county, special district, or joint powers authority" in Brown Act section requiring public hearing before imposing new or increased general tax or assessment.
Prohibition against changes in district boundaries without board's consent in districts provided for in city charter repealed
AB107, Chapter 267 (E.C. Sections 35546, 35700,35721 and 35722)Education Code sections prohibiting withdrawal of territory without consent of governing board from district where board is provided for in city charter is repealed. Primary target is the Los Angeles Unified School District; however, other districts are also impacted.
| Index of Legislation | School and community college districts which employ persons authorized to make arrests or issue notices to appear in court may share in fines and forfeitures for purposes of employing school crossing guards
AB433, Chapter 285 (Penal Code Sec. 1463)This law expands definition of "city" for purposes of sharing in fines and forfeitures to be use for traffic safety (including crossing guards) to other local agencies employing persons who make arrests or issue citations to appear in court.
District may select escrow agent to hold securities in lieu of retained funds in public works project
AB1358, Chapter 382 (Pub. Contract Code Sec. 10263)Existing law requires a district to allow a contractor to deposit securities in lieu of retained funds with an escrow agent selected by the contractor. This bill allows the district to select the escrow agent and to require errors and omissions coverage of not less than $100,000.
| Index of Legislation | Hold harmless for loss of ADA due to base closure liberalized
SB793, Chapter 651 (E.C. Sections 42127.8, 42238.2 and 42249.4)Current law provides that a district losing more than ten percent of its ADA due to a military base closure may make certain beneficial adjustments to its ADA. This legislation makes this benefit available when there is a loss in excess of eight percent or, with the approval of the State Superintendent of Public Instruction and the Director of Finance, a loss between five and eight percent.
Authority to use non-field act portable currently under waiver extended to September 30, 1997
SB291, Chapter 655 (E.C. Sections 39141.10, 39141.11 and 39304.5)Current law provides that the State Allocation Board may grant a waiver permitting the use of relocatable classrooms and certain other buildings or structures which do not conform to the Field Act until September 30, 1996. This legislation extends all waivers which expire on or before that date until September 30, 1997. Thereafter, the authority to grant waivers is repealed. Certain pregnant and parenting teen and community school programs may continue to lease non-conforming facilities if facilities meeting Field Act requirements are not available.
Also, an owned or leased non-conforming building may be used until September 30, 2007 provided:
- It is a single story not exceeding 2,160 square feet
- It was constructed after December 19, 1979, used for classroom purposes on or before September 30, 1997, and has a commercial coach approval insignia from the Department of Housing and Community Development;
- The light fixtures, hearing and air-conditioning diffuses, and the foundation meet the requirements of Title 24;
- Other facilities on the site meet Field Act requirements; and
- The Department of General Services has certified compliance with these requirements.
| Index of Legislation | Greater specificity required in audit reports
SB 125, Chapter 476 (E.C. Section 14502, 14503, 14504 14504.2, 14505 and 41341)School audit reports will be required to address each compliance requirement and state whether or not the district or county superintendent is in compliance. For each state program compliance requirement included in the audit guide, the report shall state whether the suggested audit procedures were followed. If a district is not in compliance with a requirement that is a condition for eligibility for state funds, the audit report shall note the number of units of ADA that were inappropriately reported.
AB1200 revised
AB438, Chapter 525 (E.C. Sections 1240.2, 1630, 41327, 42120, 42127,.2, 42127.3, 42127.6, 42128, 42131, 42140, and 42141)This legislation makes numerous technical changes to AB1200. The most significant substantive change is to extend to county
superintendent's stay and rescind authority to include transactions that may negatively affect the district's financial condition in the following fiscal year.| Index of Legislation | Expenditure of public funds in connection with school ballot measures; term limits for board members; relatives of board members
SB82, Chapter 879 (E. C. Sections 7054, 7054.1, 7056, 7058, 35174, and 72632)This legislation:
- Prohibits the use of any public resource for the purpose of urging the support or defeat of any ballot measure or candidate;
- Permits use of public resources to prepare a fair and impartial presentation of the relevant facts to aid the electorate in reaching informed judgment regarding the bond issue or ballot measure;
- Makes violation punishable as a misdemeanor or a felony;
- Continues to permit board members and Administrators to appear before citizens' groups, if invited, to discuss the reason the District placed a bond measure on the ballot;
- Prohibits political activities by employees and employee organizations during the work hours;
- Permits district to make facilities available to proponents and opponents of ballot measure if all sides are granted equitable access;
- Permits board or citizens to place term limit measure on ballot; and
- Requires board member to abstain from voting on personnel matters uniquely affecting a relative but permits voting if class of employees is affected.
The uncodified portion of this bill provides:
". . . [I]n a democratic society, the use of public funds in election campaigns is unjustified and inappropriate. No public entity should presume to use money derived from the whole of taxpayers to support or oppose ballot measures.
". . .[I]t is not the intent of the Legislature. . . to restrict political activities of officers or employees of a school district or a community college district. . . [or]. . .to prohibit the ability of a governing board of a school district or a community college district or a member of either of those boards from preparing or disseminating information or making public or private appearances or statements for the purpose of urging the support or defeat of any ballot measure or candidate of the appropriate district by means of, or in circumstances that do not involve the use of public funds. If no public funds are used, the governing board of a school district or a community college district would be authorized to prepare or disseminate information or make public or private appearances or statements for the purpose of urging the support or defeat of any ballot measure or candidate. The right of speech of any member of a governing board of a school district or community college district or any employee thereof is in no manner affected by this Act."| Index of Legislation | Competitive bid requirements modified
SB429, Chapter 897, (Public Contracts Code Sections 20111, 20113, 20114, 20116, 20651, 20654, 20655, 20657, and 20651.5)This legislation makes the following changes in competitive bid requirements:
- Increases the bid limits for the purchase of equipment, materials or supplies from
- $21,000 to $50,000.
- Increases the bid limits for non-construction services and maintenance from $15,000 to $50,000.
- Changes the bid limit for construction projects to $15,000 regardless of whether the project involves work to be performed (formerly $15,000) or purchases (formerly $21,000).
- The $50,000 limit is indexed so that it will increase based on inflation beginning January 1, 1997.
- The $7,500 force account limit for districts with less than 35,000 ADA is eliminated; however, the 350 hour limit is retained. For K-12 districts over 35,000 ADA and community college districts with over 15,000 full time equivalent students the hour limit is eliminated and the dollar limit is increased to $21,000.
Design-build joint venture construction projects authorized
AB481, Chapter 956 (E.C. Sections 17760-17766)School districts, subject to state allocation board approval, are now authorized to enter into joint-venture projects with developers using an RFP process to select a developer who will promote both architectural and construction services.
| Index of Legislation | Back to FCMAT On-line Resources |
Topic: Developer Fees
Developer Fee Cap And Bid Limit Both Increase
Developer Fees
The developer fee cap has increased from $1.84 to $1.93 per square foot for residential construction and from $0.30 tp $0.31 per square foot for commercial construction. Districts which increase their fees will need to undertake a justification study.
Bid Limit Increased
Effective January 1, 1998 that the bid limit for the purchase of equipment, supplies, services and repairs increased from $50,000 to $52,900. The $15,000 limit for construction and public works project remains unchanged.
Re: Increase in developer fees authorized
On January 24, 1996 the State Allocation Board authorized an increase in school impact fees for residential development from $1.72 a square foot to $1.84 a square foot. The Board also authorized an increase in the school impact fee for commercial development from $0.28 to $0.30 a square foot.
This increase in fees may be implemented as soon as a school district completes the necessary justification study. Please contact us if you have any questions.| Index of Legislation | Back to FCMAT On-line Resources |