Senate Bill 218 would amend the California Public Records Act to include "auxiliary organizations that receive public funds or perform government functions on state campuses." Auxiliary organizations include university foundations, fundraising groups, and other campus associations like bookstores.

On July 14, the bill was referred to the Assembly Committee on Appropriations instead of being considered by the full Assembly. The bill, authored by Sen. Leland Yee, D-San Francisco/San Mateo, passed the State Senate in June by a 32-1 vote and unanimously passed the State Assembly Governmental Organization Committee on July 8.

Yee noted there have been several recent instances in California when universities' auxiliary organizations have been used to pay back political favors or bolster some employees' business holdings.

"[The bill] is important because more and more of the functions of our institutions of higher education are now being shifted over to these auxiliary organizations," Yee said. "It's extremely important that we shine light on these deals and transactions to make sure the public trust isn't taken advantage of."

Jim Ewert, legal counsel for the California Newspapers Association, said the bill would not have any fiscal impact or require an appropriation of funds, which has left him confused as to why the bill is now in the appropriations committee.

The Committee on Appropriations pulled the bill into its committee for an August hearing at the request of the University of California, according to Ewert.

"The basis of UC's request is that they're going to have to spend money to deal with all of the public records requests that will be made of auxiliary organizations on their campuses," he said, adding UC has contended since the bill was introduced that auxiliary organizations are private. "Then why is UC spending public money to address the legal issues of a private organization?"

Adam Keigwin, Yee's communications director, agreed the bill does not have a financial impact. But if it is misconstrued to be costly in the midst of state budget cuts, he noted, the bill could die in the appropriations committee.

"We will certainly go in there and make the argument that there is no cost," he said. "But make no mistake that the UC and [California State University] are using their powerful and high-priced lobbyists to try killing this bill."

Steve Juarez, the director for state governmental relations at the University of California, said he thinks the bill would have a fiscal impact on the university — though not because of fulfilling an increased number of public records requests.

"Our primary point of opposition is the chilling impact we believe the bill would have on potential donors and volunteers who work on behalf of the university through our foundation," Juarez said. "Subjecting them to the same rules [as the university] will have a chilling effect on their willingness to participate."

Juarez said the bill "pretends" to allow donors to give anonymously without being subject to open records laws. He added that if the bill is passed, it might require the auxiliary organizations to release the names of anonymous donors.

SB 218 stems from a Fresno Bee investigation into who was purchasing high-end suites in the school's new basketball arena. Public records requests to the two non-profit foundations tasked to fundraise for the arena and help sell the suites were denied. In a resulting lawsuit, a California appellate court said it felt the auxiliary organizations ought to fall under the state's public records act. But, the court said, the law was too narrow to apply, noting changes were the Legislature's responsibility.

There are 87 foundations and auxiliary organizations on CSU's 23 campuses, according to a statement from Yee's office. Of its $6.7 billion budget, the university keeps 20 percent — or $1.34 billion — in auxiliary organizations and effectively out of the public's eye, according to the statement.

California universities have recently denied Freedom of Information Act requests for information about textbook sales at the campus bookstore and salaries of student body executives, claiming both groups are auxiliaries, Ewert said. He added he is afraid many of the organizations are campus "slush funds" that pay executives high salaries.

Student media has also been affected by the interpretation. Ewert noted several student newspapers have been denied information from auxiliary groups.

Yee has helped pass other legislation that ensured a more open government, including within higher education. Keigwin said the senator would continue to fight for the passage of SB 218.

"At the end of the day, these are public institutions, and they should be transparent," Keigwin said. "We should know what's going on there. The taxpayer deserves to know how their universities are run."