A bill aiming to bring greater transparency and accountability to California’s institutions of higher education was signed into law Tuesday night by Gov. Jerry Brown.
SB 8 — authored by Senator Leland Yee, D-San Francisco — requires auxiliaries and foundations associated with the state’s institutions of higher education to produce all financial records, contracts and correspondence to public disclosure upon request, according to a press release from Yee’s office. The bill applies to the UC, CSU and state’s community college system.
The signing comes after three years of legislative work and two vetoes by former governor Arnold Schwarzenegger.
Prior to the signing of this bill, public education institutions were not required to disclose details on donations through their auxiliaries and foundations. SB 8 will now require that these gifts be subject to transparency rules similar to the California Public Records Act, according to Terry Francke, general counsel for California Aware, a nonprofit group that audits public institutions for transparency.
Recent activities at state public institutions brought the issue of transparency to the forefront, Francke said.
Last year, the California State University, Stanislaus Foundation hired former Alaska governor Sarah Palin to speak at the campus’s 50th anniversary celebration. The foundation was not required to provide any details of the speaking contract with Palin to the public, including how much she was paid to speak at the event.
To obtain this information, Californians Aware filed a lawsuit, according to Francke.
“The key is that these foundations in particular at each campus are in the business of trying to attract charitable donations to support scholarships, research programs and other educational activity,” Francke said. “It’s a significant supplement to income from the state and student tuition, so it’s a whole stream of money that is supposedly flowing to these campuses through foundations.”
The signed bill was amended to protect donor anonymity except in situations where the donor receives something from the institution valued at over $2,500, receives a no-bid contract within five years of the donation or attempts to influence the institution’s curriculum or operations.
In a letter to Brown, UC Associate Vice President and Director for State Governmental Relations Steve Juarez wrote, “the bill, as amended, recognizes the need for donor privacy and recognizes the unique role that UC Campus Foundations play in supporting the educational, research and public service mission of the (UC).”
In a press release this morning, Yee expressed his appreciation for the passage of the bill.
“Finally, we will have real transparency at our public universities,” Yee said. “While this law does not technically go into effect until January 1, I am urging the UC and CSU to immediately begin complying and providing sunshine to the actions of their foundations and auxiliary organizations.”
Jessica Rossoni covers higher education.
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I have some faith restored. Governor Brown has found his MoJo.