BILL NUMBER: AB 1417	CHAPTERED
	BILL TEXT

	CHAPTER  581
	FILED WITH SECRETARY OF STATE  SEPTEMBER 18, 2004
	APPROVED BY GOVERNOR  SEPTEMBER 18, 2004
	PASSED THE SENATE  AUGUST 27, 2004
	PASSED THE ASSEMBLY  AUGUST 27, 2004
	AMENDED IN SENATE  AUGUST 23, 2004
	AMENDED IN SENATE  JANUARY 13, 2004
	AMENDED IN SENATE  JANUARY 5, 2004
	AMENDED IN ASSEMBLY  JUNE 4, 2003

INTRODUCED BY   Assembly Member Pacheco

                        FEBRUARY 21, 2003

   An act relating to community colleges, making an appropriation
therefor, and declaring the urgency thereof, to take effect
immediately.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1417, Pacheco.  Community colleges:  funding.
   (1) Existing law establishes the California Community Colleges
under the administration of the Board of Governors of the California
Community Colleges.  Existing law authorizes the establishment of
community college districts under the administration of community
college governing boards, and authorizes these districts to provide
instruction at community college campuses throughout the state.  An
item of the Budget Act of 2004 appropriated, among other amounts,
$193,591,000 from the General Fund to the board of governors for
allocation to community college districts for general apportionment
funding.
   This bill would require the board of governors to provide
recommendations, based on information to be developed in a study to
be conducted by the Chancellor of the California Community Colleges,
to the Legislature and the Governor regarding the design of a
workable structure for the annual evaluation of district-level
performance in meeting statewide educational outcome priorities,
including the priorities consistent with the appropriation referenced
above.
   (2) An item of the Budget Act of 2004 appropriated, among other
amounts, $27,345,000 from the General Fund to the board of governors
for allocation to community college districts for physical plant and
instructional support.
   This bill would set forth criteria in accordance with which a
community college district could utilize a portion of these funds for
the purpose of maintaining prior investments made for program
enhancements for student success, provided that the district reports
its planned expenditures to the chancellor on or before November 30,
2004, as prescribed.
   (3) An item of the Budget Act of 2004 appropriated, among other
amounts, $50,828,000 from the General Fund to the board of governors
for allocation to community college districts for part-time faculty
compensation.
   This bill would require that the amount appropriated in the Budget
Act of 2004 for allocation to community college districts for
part-time faculty compensation be allocated, as prescribed, solely to
increase the compensation of part-time faculty from the amounts
previously authorized.  The bill would prohibit the use of these
funds by a district to exceed the achievement of parity of
compensation for part-time and full-time faculty in that district.
The bill would authorize a district that has achieved parity to use
these funds for any educational purpose.
   (4) Because this bill would authorize the expenditure of funds
previously appropriated to the board of governors for new purposes,
it would make an appropriation.
   (5) The bill would declare that it is to take effect immediately
as an urgency statute.
   Appropriation:  yes.


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


  SECTION 1.  (a) The Board of Governors of the California Community
Colleges shall provide recommendations to the Legislature and the
Governor regarding the design of a workable structure for the annual
evaluation of district-level performance in meeting statewide
educational outcome priorities, including priorities consistent with
Provision (4) of Item 6870-101-0001 of Section 2.00 of the Budget Act
of 2004.  These recommendations shall be based on information and
data provided by a study to be completed by the Chancellor of the
California Community Colleges, with the input of institutional
representatives of community college districts.
   (b) In preparing the study referenced in subdivision (a), the
Chancellor of the California Community Colleges may, as he or she
judges necessary, consult with individuals with demonstrated
expertise in higher education accountability and evaluation.  The
chancellor also shall consult with the Department of Finance and the
Legislative Analyst's Office on an ongoing basis during the conduct
of the study.  The study process shall also afford community college
organizations, and interested parties and individuals, the
opportunity to review and comment on the proposed recommendations
before their consideration and adoption by the Board of Governors of
the California Community Colleges.  The board of governors shall
provide copies of the study and recommendations on or before March
25, 2005, to the Governor, the fiscal committees of the Legislature,
and the higher education policy committees of the Legislature.
  SEC. 2.  (a) Notwithstanding any other provision of law, this
section shall apply only to a community college district that meets
either of the following criteria:
   (1) The sum of funds allocated to that district from Schedule (1)
of, pursuant to Provision (6) of, and from Schedule (3) of, pursuant
to subdivision (b) of Provision (10) of, Item 6870-101-0001 of
Section 2.00 of the Budget Act of 2004, equals zero.
   (2) The amount of the reduction in the district's Partnership for
Excellence funds during the 2004-05 fiscal year, divided by the sum
of funds allocated to that district from Schedule (1) of, pursuant to
Provision (6) of, and from Schedule (3) of, pursuant to subdivision
(b) of Provision (10) of, Item 6870-101-0001 of Section 2.00 of the
Budget Act of 2004, exceeds 50 percent.
   (b) A district meeting the criteria in subdivision (a) may use all
or a portion of the funds allocated to that district from Schedule
(19) of Item 6870-101-0001 of Section 2.00 of the Budget Act of 2004
for the purpose of maintaining prior investments made for program
enhancements for student success that otherwise would be jeopardized
by the reduction in Partnership for Excellence funding,
notwithstanding any other restriction upon the use of these funds.
In no event may the amount of funds used by an applicable district
for maintaining program enhancements exceed the amount of the
reduction in Partnership for Excellence allocations realized by the
district in the 2004-05 fiscal year.
   (c) As a condition of utilizing the flexibility authorized by this
section, each participating community college district shall report
to the chancellor on its planned expenditures from Schedule (19) of
Item 6870-101-0001 of Section 2.00 of the Budget Act of 2004 on or
before November 30, 2004, in a format prescribed by the chancellor.
The chancellor shall provide a summary report of these planned
expenditures to the Governor, the Director of Finance, and the fiscal
committees of the Legislature on or before December 31, 2004.
  SEC. 3.  (a) The funds allocated in Schedule (14) of Item
6870-101-0001 of Section 2.00 of the Budget Act of 2004 shall be
allocated solely to increase the compensation of part-time faculty
from the amounts previously authorized.  These funds shall be
distributed to community college districts based on the total of
actual full-time equivalent students served in the previous fiscal
year, and shall include a small district factor as determined by the
chancellor.  These funds shall be used to assist districts in making
part-time faculty salaries more comparable to full-time salaries for
similar work, as determined through each district's local collective
bargaining process.
   (b) The funds shall not supplant the amount of resources each
district uses to compensate part-time faculty, and shall not be used
to exceed the achievement of parity in compensation for each
part-time faculty employed by each district with regular full-time
faculty of that district, as certified by the chancellor.  If a
district has achieved parity, its allocation under Schedule (14) of
Item 6870-101-0001 of Section 2.00 of the Budget Act of 2004 may be
used for any other educational purpose.
  SEC. 4.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect.  The facts constituting the necessity are:
   In order to implement, in a timely fashion, a necessary revision
to the community college funding priorities adopted pursuant to the
Budget Act of 2004, it is necessary that this act take effect
immediately.