BILL NUMBER: AB 318 CHAPTERED
BILL TEXT
CHAPTER 50
FILED WITH SECRETARY OF STATE JUNE 30, 2006
APPROVED BY GOVERNOR JUNE 30, 2006
PASSED THE ASSEMBLY JUNE 29, 2006
PASSED THE SENATE JUNE 26, 2006
AMENDED IN SENATE JUNE 15, 2006
AMENDED IN SENATE JUNE 14, 2006
AMENDED IN SENATE MAY 30, 2006
AMENDED IN SENATE MAY 16, 2006
AMENDED IN SENATE APRIL 26, 2006
AMENDED IN SENATE FEBRUARY 6, 2006
AMENDED IN ASSEMBLY MAY 26, 2005
INTRODUCED BY Assembly Member Dymally
FEBRUARY 10, 2005
An act to amend Sections 41329.50, 41329.51, 41329.52, 41329.55,
and 71093 of, to add Sections 41329.58 and 41329.59 to, and to add
Article 5 (commencing with Section 74292) to Chapter 5 of Part 46 of,
the Education Code, and to amend Section 63049.67 of the Government
Code, relating to community colleges, making an appropriation
therefor, and declaring the urgency thereof, to take effect
immediately.
LEGISLATIVE COUNSEL'S DIGEST
AB 318, Dymally Community colleges: Compton Community College
District.
(1) Existing law establishes the California Community Colleges
under the administration of the Board of Governors of the California
Community Colleges. Existing law requires the board of governors to
appoint a chief executive officer, known as the Chancellor of the
California Community Colleges. Existing law provides for the
establishment of community college districts throughout the state,
including the Compton Community College District. Existing law
authorizes these districts to provide instruction to students at the
campuses operated by these districts.
This bill would express various findings and declarations of the
Legislature with respect to the withdrawal of accreditation from the
Compton Community College District and the impact the withdrawal
would have on the students and residents of the Compton Community
College District.
(2) Existing law authorizes emergency advance apportionments to be
provided to a school district that complies with prescribed
requirements, including the submission of a report issued by an
independent auditor with respect to the financial conditions and
budgetary controls of the district, a written management review
conducted by a qualified management consultant approved by the county
superintendent of schools, and a fiscal plan adopted by the
governing board to resolve the financial problems of the district.
This bill would authorize a community college district that has
had a trustee appointed pursuant to specified provisions to request,
and receive an emergency apportionment. The bill would appropriate
$30,000,000 from the General Fund to the Board of Governors of the
California Community Colleges for apportionment to the Compton
Community College District as an emergency apportionment, as
specified.
To the extent the funds appropriated by this bill are allocated to
a community college district, as defined by existing law for
purposes of Section 8 of Article XVI of the California Constitution,
those funds may be applied toward the minimum funding requirements
for school districts and community college districts imposed by
Section 8 of Article XVI of the California Constitution.
(3) Existing law establishes the County Office Fiscal Crisis and
Management Assistance Team (FCMAT), which consists of persons having
extensive experience in school district budgeting, accounting, data
processing, telecommunications, risk management, food services, pupil
transportation, purchasing and warehousing, facilities maintenance
and operation, and personnel administration, organization, and
staffing. Existing law authorizes community college districts to
request the FCMAT to provide specified services, at that district's
expense, as specified.
This bill would require the FCMAT to conduct an extraordinary
audit of the Compton Community College District on or before October
30, 2006. The bill would require the FCMAT to conduct a comprehensive
assessment and prepare a recovery plan, to be delivered to the
Chancellor's Office of the California Community Colleges and the
Department of Finance, for the Compton Community College District
addressing 5 specified operational areas, on or before January 31,
2007. The bill would require the FCMAT to file a written status
report at regular intervals with the appropriate fiscal and policy
committees of the Legislature, the advisory committee to the special
trustee, the Chancellor of the California Community Colleges, the
Director of Finance, and the Secretary for Education. The bill would
require these status reports to include the progress that the Compton
Community College District is making in meeting the recommendations
of the FCMAT comprehensive assessment and addressing the deficiencies
identified by the Accrediting Commission for Community and Junior
Colleges. The bill would require that up to $500,000 be provided to
the Compton Community College District from a specified item of the
annul Budget Act to fund this audit.
(4) Existing law, until January 1, 2008, authorizes the board of
governors to authorize the chancellor to suspend, for a period of up
to one year, in accordance with a prescribed procedure, the authority
of the Board of Trustees of the Compton Community College District,
or of any of the members of the board, to exercise and any powers or
responsibilities or to take any official actions with respect to the
management of the district. Existing law authorizes the chancellor to
renew a suspension under this provision as many times, and as often,
as he or she finds it necessary during the period of the operation
of the provision. Existing law authorizes the chancellor to appoint a
special trustee, at district expense, to manage the district, in
accordance with a prescribed procedure.
This bill would instead authorize the board of governors to
suspend the authority of the Board of Trustees of the Compton
Community College District under this provision for a period of up to
5 years from the effective date of this bill, plus a period lasting
until the chancellor, the FCMAT, the Director of Finance, and the
Secretary for Education concur with the special trustee that the
district has, for 2 consecutive academic years, met the requirements
of the comprehensive assessment conducted, and the recovery plan
prepared, pursuant to the bill. The bill would delete the authority
of the chancellor to renew a suspension under this provision as many
times, and as often, as he or she finds it necessary during the
period of the operation of the provision. The bill would exempt the
chancellor from complying with specified requirements relating to
preferences for disabled veterans, and from complying with the State
Contract Act, in appointing the special trustee. The bill would
authorize the chancellor to assume, and delegate to the special
trustee, powers and duties of the Compton Community College District
Personnel Commission that the chancellor determines are necessary for
the management of the personnel functions of the district. The bill
would authorize the special trustee to be a member of the State
Teachers' Retirement System or the Public Employees' Retirement
System for the period of service as a special trustee, if that person
has been a member of either of those systems, unless the special
trustee elects, in writing, not to be a member.
The bill would authorize the special trustee to do all of the
following: implement substantial changes in the fiscal policies and
practices of the Compton Community College District; revise the
academic program of the Compton Community College District to reflect
realistic income projections in response to the dramatic effect of
the changes in fiscal policies and practices upon program quality;
encourage all members of the college community to accept a fair share
of the burden of the full recovery of the Compton Community College
District in 5 specified operational areas; enter into agreements on
behalf of the Compton Community College District and, subject to any
contractual and statutory obligation of the Compton Community College
District, change any existing district rules, regulations, policies,
or practices as necessary for the effective implementation of the
recovery plan, as specified; and appoint an advisory committee, as
specified.
The bill would extend the operation of this provision
indefinitely.
(5) Existing law sets forth procedures to be followed in the event
of the formation of a new community college district or the
reorganization of an existing community college district.
This bill would set forth procedures to be followed in the event
that the Compton Community College's accreditation is terminated by
the regional accrediting body recognized by the board of governors.
The bill would authorize the chancellor to oversee all actions at
the Compton Community College District related to the loss of the
college's accreditation. The bill would require the district to
complete the provision of instruction in all classes for which it
intends to claim apportionment prior to the date of the loss of
accreditation. The bill would provide that, notwithstanding any other
provision of law, the Compton Community College District would
continue to be eligible to receive state funding as provided under
the bill even if the accreditation is terminated.
The bill would require the Compton Community College District to
identify a partner district that would agree to provide accredited
instructional programs to students residing in the Compton Community
College District. The bill would authorize the special trustee and
the partner district to enter into one or more agreements for the
provision of instructional services or other services. The bill would
specify the educational services that the partner district would
agree to provide to Compton Community College District students.
The bill would require that the Compton Community College District
receive an apportionment, as specified, for courses provided at the
Compton Community Educational Center by the partner district. The
bill would provide that a statute requiring that 50% of the current
expense of education, as defined, be expended on the salaries of
classroom instructors would not apply to the Compton Community
College District from the 2003-04 fiscal year to the 2008-09 fiscal
year, inclusive.
Because the bill would impose new duties on the Compton Community
College District, it would constitute a state-mandated local program.
(6) A provision of the California Constitution requires that a
local or a special statute is invalid in any case if a general
statute can be made applicable.
This bill would express the finding and declaration of the
Legislature that, due to the unique circumstances relating to the
accreditation status of Compton Community College, a general statute
cannot be made applicable, and the enactment of specified provisions
of the bill as a special statute is therefore necessary.
(7) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
(8) 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. With respect to the general background and intent of
the act that adds this section, the Legislature finds and declares
all of the following:
(a) Accreditation is a means for ensuring the academic quality and
accountability for the colleges in the California Community College
system. Additionally, students of the California Community Colleges
must attend an accredited community college in order to participate
in federal financial assistance programs.
(b) All colleges within the California Community Colleges system
should be accredited by the recognized regional accrediting
association serving California.
(c) The loss of accreditation by a college of the California
Community Colleges presents a severe burden for the students of that
college and for the residents of the community served by that
college. Neither the students nor the residents should be deprived of
educational opportunities due to the loss of accreditation by a
community college.
(d) The Legislature finds that a California community college
district whose colleges have lost accreditation presents the state
with financial and educational emergencies and that extraordinary
measures are required to address those emergencies.
(e) The Accrediting Commission for Community and Junior Colleges
has found that Compton Community College does not meet accreditation
standards, and has decided to withdraw accreditation. That decision
may become effective on or before June 30, 2006. It is in the public
interest to provide services through an accredited college to the
persons adversely affected by the loss of accreditation by Compton
Community College. Accordingly, it is the intent of the Legislature
to provide for uninterrupted educational opportunities through
another accredited community college for the students who currently
attend the Compton Community College District and to provide
continued meaningful access to that educational opportunity within
the California Community College system to the residents of the
Compton Community College District.
(f) In order to provide for continuing educational opportunities
through an accredited college for the residents of the Compton
Community College District and for the preservation of federal
funding for students of the Compton Community College District,
extraordinary legislative measures are required.
SEC. 2. With respect to meeting the needs of current students and
residents of the Compton Community College District, the Legislature
finds and declares all of the following:
(a) The appropriate way to provide for immediate continuing
educational opportunities to the students and residents of the
Compton Community College District is for the Compton Community
College District to identify another community college district that
is willing to serve as a partner and provide accredited educational
and related administrative and support services using the facilities
of the Compton Community College District as an educational center in
that area. Those educational and support services should include
offering a full range of credit courses leading to an associate
degree for Compton students, making provisions for continuing or
accelerating educational offerings for current Compton Community
College students who are close to graduating, providing special
counseling services to assist Compton Community College students who
are considering transferring to other community colleges or
baccalaureate institutions, and meeting the transitional needs of
significant numbers of students who previously attended the Compton
Community College District.
(b) Although uninterrupted service to existing students is the
highest priority, a critically important measure of ongoing
educational success in the Compton area will be the extent to which
the community college system is able to identify problems that lead
to the loss of accreditation and to construct a recovery plan to
address those problems. In the near future, significant efforts must
be made to determine the needs and desires of students served by the
elementary and secondary schools within the Compton Community College
District and to formulate long-term success strategies for them
within the California Community College system.
(c) The Compton Community College District will require enhanced
state assistance and resources in order to address the issues that
led to loss of accreditation and to contract for continued
educational and support services for the students and residents of
the Compton Community College District. The Board of Governors of the
California Community Colleges will also require additional resources
to oversee federally required actions resulting from the loss of
accreditation and to support the educational recovery efforts.
(d) The Compton Community College District will also have
responsibilities related to its loss of accreditation, including, but
not limited to, actions mandated by federal authorities for
reconciling student financial assistance programs. The Compton
Community College District must also continue to support the efforts
of the partner district to provide the services described in this
act. The Board of Governors of the California Community Colleges must
be authorized to continue its oversight role of the Compton
Community College District to ensure that these transitional
responsibilities are met.
(e) Because of circumstances beyond the control of the state,
there may be a period of time before the partner district is
authorized to distribute federal financial assistance to Compton
students. Should this occur, state resources should be available to
replace federal funding so as to allow affected students to complete
the academic term they began before federal funding became
unavailable.
SEC. 3. With respect to financing the activities described in this
act, the Legislature finds and declares all of the following:
(a) The Legislature must provide fiscal support to the Compton
Community College District to maximize its efforts to contract for
educational services and to provide stability for the students and
residents of the Compton Community College District.
(b) It is not possible to identify all actions that may be
required to give effect to this bill or the expenses related to those
actions.
(c) The Compton Community College District should also have access
to existing emergency funding resources.
SEC. 4. Section 41329.50 of the Education Code is amended to read:
41329.50. The following definitions apply to this article, and,
except as provided in subdivision (d), apply to Article 2 (commencing
with Section 41320) and Article 2.5 (commencing with Section 41325),
unless the context clearly indicates or requires another or
different meaning:
(a) "Bank" means the California Infrastructure and Economic
Development Bank.
(b) "Bonds" has the same meaning specified in Section 63010 of the
Government Code.
(c) "Loan" and "emergency apportionments" means the financing
described in Sections 41329.51, 41329.52, and 41329.53. The financing
does not constitute a borrowing, but, instead, constitutes an
advance payment of apportionments subject to repayment with interest
as described in the article.
(d) "School district" means a school district that requests an
emergency apportionment pursuant to Section 41320, including an
administrator appointed pursuant to Article 2 (commencing with
Section 41320) and a trustee appointed pursuant to Article 2.5
(commencing with Section 41325), or, for the purposes of this article
only, a community college district, including a special trustee
appointed pursuant to Section 71093 or 84040.
SEC. 5. Section 41329.51 of the Education Code is amended to read:
41329.51. Notwithstanding any other law, an emergency
apportionment is a financing provided to a community college district
as authorized by the Legislature or to a school district, other than
a community college district, complying with the requirements
contained in Article 2 (commencing with Section 41320) and Article
2.5 (commencing with Section 41325). The emergency apportionment
shall be made pursuant to either Section 41329.52 or Section
41329.53, as determined by statute. The school district, the bank,
and the Superintendent of Public Instruction, or the Board of
Governors of the California Community Colleges, as appropriate, shall
promptly perform the duties specified in the statute making the
emergency apportionment.
SEC. 6. Section 41329.52 of the Education Code is amended to read:
41329.52. (a) A school district may receive a two-part financing
designed to provide an advance of apportionments owed to the district
from the State School Fund.
(b) The initial emergency apportionment shall be an interim loan
from the General Fund to the school district. General Fund money
shall not be advanced to a school district until that district agrees
to obtain a lease financing as described in subdivision (c) and the
bank adopts a reimbursement resolution governing the lease financing.
The interim loan shall be repaid in full, with interest, from the
proceeds of the lease financing pursuant to subdivision (c) at a time
mutually agreed upon between the Department of Finance and the bank.
The interest rate on the interim loan shall be the rate earned by
moneys in the Pooled Money Investment Account as of the date of the
initial disbursement of emergency apportionments to the school
district.
(c) The school district shall enter into a lease financing with
the bank for the purpose of financing the emergency apportionment,
including a repayment to the General Fund of the amount advanced
pursuant to subdivision (b). In addition to the emergency
apportionment, the lease financing may include funds necessary for
reserves, capitalized interest, credit enhancements and costs of
issuance. The bank shall issue bonds for that purpose pursuant to the
powers granted pursuant to the Bergeson-Peace Infrastructure and
Economic Development Bank Act as set forth in Division 1 (commencing
with Section 63000) of Part 6.7 of the Government Code. The term of
the lease shall not exceed 20 years, except that if at the end of the
lease term any rent payable is not fully paid, or if the rent
payable has been abated, the term of the lease shall be extended for
a period not to exceed 10 years.
SEC. 7. Section 41329.55 of the Education Code is amended to read:
41329.55. (a) Simultaneous with the execution of the lease
financing authorized pursuant to Section 41329.52, the bank shall
provide to the Controller and the school district a notification of
its lease financing. The notice shall include a schedule of rent
payments to become due to the bank from the school district and the
bond trustee. The Controller shall make the apportionment to the bond
trustee of those amounts on the dates shown on the schedule. The
bank may further authorize the apportionments to be used to pay or
reimburse the provider of any credit enhancement of bonds and other
ongoing or periodic ancillary costs of the bond financing issued by
the bank in connection with this article. If the amount of rent
payments vary from the schedule as a result of variable interest
rates on the bonds, early redemptions, or changes in expenses, the
bank shall amend or supplement the schedule accordingly.
(b) Except where financing is for a community college district,
the Controller shall make the apportionment only from moneys in
Section A of the State School Fund designated for apportionment to
the district and any apportionment authorized pursuant to this
subdivision shall constitute a lien senior to any other apportionment
or payment of State School Fund moneys to or for that district not
made pursuant to this subdivision.
(c) If financing is for the Compton Community College District,
the Controller shall make the apportionment only from moneys in
Section B of the State School Fund. Any apportionment authorized
pursuant to this subdivision shall constitute a lien senior to any
other apportionment or payment of Section B State School Fund moneys.
(d) The amount apportioned for a school district pursuant to this
section is an allocation to the district for purposes of subdivision
(b) of Section 8 of Article XVI of the California Constitution. For
purposes of computing revenue limits pursuant to Section 42238 for
any school district, the revenue limit for any fiscal year in which
funds are apportioned for the district pursuant to this section shall
include any amounts apportioned by the Controller pursuant to
subdivisions (a), (b), and (c), as well as Section 41329.57.
(e) No party, including the school district or any of its
creditors, shall have any claim to the money apportioned or to be
apportioned to the bond trustee by the Controller pursuant to this
section.
SEC. 8. Section 41329.58 is added to the Education Code, to read:
41329.58. The sum of thirty million dollars ($30,000,000) is
hereby appropriated, without regard to fiscal year, from the General
Fund to the Board of Governors of the California Community Colleges
for apportionment to the Compton Community College District as an
emergency apportionment to finance, among other things, the
activities described in Article 5 (commencing with Section 74292) of
Chapter 5 of Part 46.
SEC. 9. Section 41329.59 is added to the Education Code, to read:
41329.59. (a) On or before October 30, 2006, the Fiscal Crisis
and Management Assistance Team (FCMAT) shall conduct an extraordinary
audit of the Compton Community College District, to be delivered to
the Board of Governors of the California Community Colleges and the
Director of Finance, focused upon an examination of alleged fraud,
misappropriation of funds, or other illegal fiscal practices. The
audit shall be conducted in a timely and efficient manner.
(b) On or before January 31, 2007, the FCMAT shall conduct a
comprehensive assessment and prepare a recovery plan, to be delivered
to the Board of Governors of the California Community Colleges and
the Department of Finance, for the Compton Community College District
addressing the five operational areas: financial management,
academic achievement, personnel management, facilities management,
and governance/community relations.
(c) The FCMAT shall file a written status report at regular
intervals with the appropriate fiscal and policy committees of the
Legislature, the advisory committee to the special trustee, the Board
of Governors of the California Community Colleges, the Director of
Finance, and the Secretary for Education. The status reports shall
include the progress that the Compton Community College District is
making in meeting the recommendations of the FCMAT comprehensive
assessment and addressing the deficiencies identified by the
Accrediting Commission for Community and Junior Colleges.
(d) Notwithstanding any other provision of law, an amount of up to
five hundred thousand dollars ($500,000) shall be provided to the
Compton Community College District from any funds budgeted for FCMAT
in Item 6110-107-0001 of Section 2.00 of the annual Budget Act or any
other funds available from prior budget years for FCMAT for the
purpose of funding the audit described in subdivision (a) of this
section.
SEC. 10. Section 71093 of the Education Code is amended to read:
71093. Notwithstanding any other provision of law:
(a) The board of governors may authorize the chancellor to suspend
the authority of the Board of Trustees of the Compton Community
College District, or of any of the members of that board, to exercise
any powers or responsibilities or to take any official actions with
respect to the management of the district, including any of the
district's assets, contracts, expenditures, facilities, funds,
personnel, or property. The board of governors may authorize
suspension for a period up to five years from the effective date of
Assembly Bill 318 of the 2005-06 Regular Session, plus a period
lasting until the chancellor, the Fiscal Crisis and Management
Assistance Team, the Director of Finance, and the Secretary for
Education concur with the special trustee that the district has, for
two consecutive academic years, met the requirements of the
comprehensive assessment conducted, and the recovery plan prepared,
pursuant to Section 41329.59.
(b) A suspension authorized by this section becomes effective
immediately upon the delivery of a document to the administrative
offices of the Compton Community College District that sets forth the
finding of the chancellor that a suspension pursuant to this section
is necessary for the establishment of fiscal integrity and security
in that district.
(c) (1) If and when the chancellor suspends the authority of the
Board of Trustees of the Compton Community College District or any of
its members pursuant to this section, the chancellor may appoint a
special trustee as provided in paragraph (3) of subdivision (c) of
Section 84040, at district expense, to manage the district. The
chancellor is authorized to assume, and delegate to the special
trustee, those powers and duties of the Board of Trustees of the
Compton Community College District that the chancellor determines,
with the approval of the board of governors, are necessary for the
management of that district. The Board of Trustees of the Compton
Community College District may not exercise any of the duties or
powers assumed by the chancellor under this section.
(2) The chancellor may appoint as a special trustee under this
section a person who has served in a similar capacity prior to the
enactment of the act that adds this section. A special trustee
appointed under this section shall serve at the pleasure of the
chancellor.
(3) Notwithstanding any other provision of law, in order to
facilitate the appointment of the special trustee, the chancellor is
exempt, for the purposes of this section, from the requirements of
Article 6 (commencing with Section 999) of Chapter 6 of Division 4 of
the Military and Veterans Code and Part 2 (commencing with Section
10100) of the Public Contract Code.
(d) Notwithstanding any other provision of law, at any time that
this section is in effect, the chancellor is authorized to assume,
and delegate to the special trustee, those powers and duties of the
Compton Community College District Personnel Commission that the
chancellor determines are necessary for the management of the
personnel functions of the Compton Community College District. The
personnel commission may not exercise any of the powers or duties
assumed by the chancellor.
(e) Notwithstanding any other provision of law, if the special
trustee has been a member of the State Teachers' Retirement System or
the Public Employees' Retirement System at any time prior to
appointment, he or she shall, for the period of service as special
trustee, be a member of the system to which he or she belonged,
unless the special trustee elects, in writing, not to be a member. If
the special trustee chooses to be a member, the special trustee
shall be placed on the payroll of the district, or the payroll of
another local education agency or other entity with which the
district has an exchange agreement pursuant to Section 87422 or other
applicable provisions of law, for the purpose of providing
appropriate contributions to the applicable retirement system.
(f) The special trustee appointed pursuant to this section is
authorized to do all of the following:
(1) Implement substantial changes in the fiscal policies and
practices of the Compton Community College District.
(2) Revise the academic program of the Compton Community College
District to reflect realistic income projections in response to the
dramatic effect of the changes in fiscal policies and practices upon
program quality.
(3) Encourage all members of the college community to accept a
fair share of the burden of the full recovery of the Compton
Community College District in the five operational areas of finance,
academics, personnel facilities, and governance.
(4) Enter into agreements on behalf of the Compton Community
College District and, subject to any contractual and statutory
obligation of the Compton Community College District, change any
existing district rules, regulations, policies, or practices as
necessary for the effective implementation of the recovery plan. Any
agreement authorized by this section shall be binding upon the
district for the term of the agreement, notwithstanding the removal
of the special trustee for any reason or the reinstatement of any
powers or responsibilities of the board of trustees. No agreement
authorized by this paragraph shall materially impair the security and
other interests of the holders of any bonds issued pursuant to
Article 9 (commencing with Section 63049.67) of Chapter 2 of Division
1 of Title 6.7 of the Government Code.
(5) Appoint an advisory committee to advise the special trustee
with respect to the management of the Compton Community College
District and the establishment and implementation of the arrangements
for provision of services by a partner district pursuant to Article
5 (commencing with Section 74292) of Chapter 5 of Part 46. This
advisory committee may include residents of the communities served by
the Compton Community College District, and any outside experts
deemed appropriate by the special trustee. No member of the advisory
committee shall receive any compensation or benefits for his or her
services as a member of the advisory committee.
(g) In the event of a vacancy in the special trustee position, the
chancellor shall temporarily assume all of the powers and duties of
the special trustee until another special trustee can be appointed
pursuant to this section.
SEC. 11. Article 5 (commencing with Section 74292) is added to
Chapter 5 of Part 46 of the Education Code, to read:
Article 5. Continuing Services If Compton Community College
Loses Accreditation
74292. Notwithstanding any other provision of law, the following
steps shall be taken to address the imminent risk that Compton
Community College's accreditation will be terminated by the regional
accrediting body recognized by the Board of Governors of the
California Community Colleges:
(a) The Chancellor of the California Community Colleges is
authorized to oversee all actions at the Compton Community College
District related to the loss of the college's accreditation and
efforts described in this article to address that situation. The
Compton Community College District shall reimburse the Board of
Governors of the California Community Colleges for any expenses
incurred by the chancellor or his or her staff in carrying out this
oversight responsibility.
(b) The Compton Community College District shall complete the
provision of instruction for all classes for which it intends to
claim apportionment prior to the date of its loss of accreditation.
(c) Notwithstanding any other provision of law, the Compton
Community College District shall continue to be eligible to receive
state funding as provided in this article even if its accreditation
is terminated.
(d) (1) The Compton Community College District shall identify a
partner district that will agree to provide accredited instructional
programs to students residing in the Compton Community College
District. The special trustee assigned to the Compton Community
College District pursuant to Section 71093 and the partner district
are authorized to enter into one or more agreements to provide
instructional services or other services, and to make any other
necessary preparations to implement the educational programs
described in this article, as well as any related necessary
administrative or support services, in a timely manner so as to
ensure that services to Compton Community College students will not
be interrupted and that those students will remain eligible for
federal financial assistance. The agreement or agreements shall
provide that the partner district is entitled to receive a reasonable
administrative fee to be fixed by the mutual agreement of the
parties.
(2) The partner district shall be a district in good standing with
the Accrediting Commission for Community and Junior Colleges
(ACCJC), and shall have successfully completed the accreditation
cycle and secured accreditation for its colleges. A district with a
college that is on warning, probation, or show-cause status with the
ACCJC, or that is being monitored for fiscal stability by the
chancellor's office is not considered a district in good standing for
the purposes of this article.
(e) The partner district may offer any programs or courses for
which it has secured applicable approvals. In addition, any programs
and courses that were previously approved by the board of governors
to be offered by the Compton Community College District may continue
to be offered by the partner district in the territory of the Compton
Community College District without additional state approval until
June 30, 2011.
(f) No later than 30 days after Compton Community College's loss
of accreditation, the board of governors shall approve the facilities
of Compton Community College as an off-campus educational center of
the partner district. The center shall be known as the Compton
Community Educational Center. The board of governors shall give
notice of its approval to the county committee and county
superintendent having jurisdiction over any territory affected by the
action.
(g) The board of governors may permanently or temporarily waive
any of its regulatory requirements necessary to effectuate this
article, including, but not necessarily limited to, its regulations
regarding educational centers.
(h) The partner district is eligible to provide instruction at the
center without the recommendation of the California Postsecondary
Education Commission under Section 66904 until the district secures
the commission's recommendation for the facility to operate as an
off-campus educational center or until June 30, 2011, whichever
occurs first.
(i) The partner district shall comply with all federal
requirements to ensure that students taking classes offered by the
partner district at the Compton Community Educational Center remain
eligible for federal financial assistance.
(j) Students enrolled in the Compton Community College District as
of January 31, 2006, shall be subject to the following conditions:
(1) The partner district shall ensure that any student who, by the
end of the Spring 2006 term, has completed at least 75 percent of
the courses required for the degree or certificate he or she is
pursuing will be able to complete that
program. Every reasonable effort shall be made to
allow other students who have begun work toward a certificate or
degree, but who have not completed 75 percent of the required
coursework, to continue and complete their programs.
(2) Students enrolling in classes provided by the partner district
pursuant to this section shall be considered students of the partner
district, shall receive credit from the partner district for classes
they successfully complete, shall receive certificates or degrees
they earn from the partner district, and shall receive financial aid
through the partner district if they meet all applicable eligibility
requirements.
(3) The partner district shall maintain student records related to
the attendance of students in classes it offers pursuant to this
section in accordance with all applicable state and federal laws.
(4) The partner district shall consider each student who enrolls
for classes no later than the Spring 2007 term to be a continuing
student for purposes of enrollment priorities.
(5) Any regulations of the board of governors relating to minimum
residence at the college granting a degree shall not be applicable.
(k) The board of governors shall adopt any regulations necessary
to implement this article. These regulations may be adopted as
emergency regulations that may remain in effect for up to one year
from the date of adoption, and shall not be subject to paragraph (5)
or (6) of subdivision (a) of Section 70901.5 or to Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2 of
the Government Code.
(l) (1) The partner district shall provide the services described
in this article for a minimum of five years from the date those
services commence pursuant to subdivision (d), and shall thereafter
provide the services for any additional period determined necessary
by the board of governors. In addition, the board of governors may
require, in its sole discretion, that the services described herein
be modified or terminated at an earlier date based on the best
interests of the California Community Colleges system and its
students.
(2) Notwithstanding paragraph (1), either the partner district or
the special trustee appointed pursuant to Section 71093 may initiate
termination of the agreements described in subdivision (d) by giving
180 days' written notice to the other party and to the board of
governors. No termination pursuant to this subdivision may take
effect until the end of the semester following the notice provided
under this paragraph, so as to protect students from a mid-term
interruption of educational services. Should the partner district
provide notice of a desire to terminate any agreements at a time when
the trustee determines that services provided under those agreements
are still necessary to serve the interests of Compton students and
residents or at a time when the Compton Community College District is
not fully accredited and bonds issued pursuant to Section 41329.52
are outstanding, the partner district shall continue the services
until it can secure a district to provide uninterrupted comparable
services to the satisfaction of the special trustee.
(m) (1) The Compton Community College District shall continue to
be responsible for ensuring that all of its permanent records are
retained and stored as required by state law and that all records
related to its administration of programs under Title IV of the
federal Higher Education Act are retained for a minimum of three
years after the conclusion of its participation in those programs.
(2) The Compton Community College District shall be responsible
for institutional actions related to the loss of accreditation,
including actions that are required under Section 688.26 of Title 34
of the Code of Federal Regulations, related to the ending of the
participation of the Compton Community College District in programs
under Title IV of the federal Higher Education Act, refunding any
students' unearned tuition and fees, refunding to the federal
government any unexpended federal student financial aid funds,
returning to lenders any loan proceeds not distributed to students,
or the collection of outstanding student debts to the Compton
Community College District.
(n) In addition to addressing the ongoing educational needs of the
students of the Compton Community College District, the partner
district and the special trustee appointed pursuant to Section 71093
shall take steps aimed at achieving the goal of seeking renewed
accreditation for Compton Community College at the earliest feasible
date. Progress toward achieving this goal shall be periodically
reported to the board of governors.
(o) No person, firm or organization shall, without the permission
of the Compton Community College District, use the name "Compton
Community College," or any name of which these words are a part, or
any abbreviation thereof.
74292.5. Notwithstanding any other provision of law, so long as
any bond issued pursuant to Section 63049.67 of the Government Code
for the Compton Community College District is outstanding, all real
property leases securing those bonds shall be leased by the Compton
Community College District, and not the Compton Community Educational
Center or any partner district.
74292.7. Cal Grant awards to students of the Compton Community
College District shall not be adversely affected by this article.
74293. Notwithstanding any other provision of law:
(a) The partner district shall provide educational programs, as
described in Section 74292, at the Compton Community Educational
Center on the following terms:
(1) To the extent determined necessary by agreement between the
Compton Community College District and the partner district, the
Compton Community College District shall assign its current
employees, or reemploy former employees, to provide educational or
support services to students under the instructional services or
other agreements described in Section 74292. The Compton Community
College District has no obligation to assign or to reemploy persons
who occupy or previously occupied administrative or supervisory
positions to those positions. Notwithstanding any other provision of
law, a person who provides services pursuant to this paragraph shall
not be deemed to be an employee of the partner district or gain any
status with the partner district for any purpose.
(2) Individuals providing educational or support services pursuant
to paragraph (1) who serve as academic employees or educational
administrators shall meet applicable minimum qualifications
established by the Board of Governors of the California Community
Colleges as well as any other job-related qualifications for service
that are established by the partner district.
(3) The partner district shall have the primary right to direct
activities under the contract or contracts in a manner that is
consistent with the role of Compton Community College District as the
employer of the individuals who are assigned duties under the
agreements by the partner district. The partner district shall
provide performance assessments to the special trustee appointed
pursuant to Section 71093 regarding the services provided by
employees of the Compton Community College District.
(b) Nothing in this section shall be construed to limit the
ability of the Compton Community College District to employ employees
of any type or class as otherwise authorized by law as needed to
provide necessary services.
(c) The Compton Community College District shall continue to be
responsible for all retiree benefits that it offered its employees
prior to the date of its loss of accreditation and for retirement and
other benefits for its employees assigned to provide services
pursuant to subdivision (a). The partner district shall have no
responsibility for any retiree or other benefits for persons provided
by the Compton Community College District to serve under
instructional services or other agreements described in this article.
(d) Nothing in this section shall be construed to limit the
ability of the partner district to assign its existing personnel to
oversee or manage services provided under instructional services or
other agreements described in Section 74292 or to employ employees of
any type or class as otherwise authorized by law as needed to
provide oversight and management of those services. Any person who
provides services pursuant to this subdivision shall not be deemed to
be an employee of the Compton Community College District or gain any
status with that district for any purpose, and that person shall not
lose any rights, benefits, or status that he or she had previously
acquired with the partner district.
(e) Nothing in this article shall be construed to interfere with,
or require any change in, the existing bargaining units and
collective bargaining agreements of the Compton Community College
District.
(f) All existing statutory due process protections for employees
of the Compton Community College District shall remain in effect
including, but not necessarily limited to, the provisions governing
layoff or dismissal, acquisition of tenure, and all other provisions
of the Education Code except as expressly provided in this article.
(g) Nothing in this article shall be construed to interfere with
or preclude negotiations with employee organizations in either of the
districts over the effects, if any, of the partner district's
operation of the Compton Community College District.
74295. Notwithstanding any other provision of law:
(a) The Compton Community College District shall receive
apportionment for courses provided at the Compton Community
Educational Center by the partner district pursuant to Section 74292,
subject to the transfer of moneys described in Sections 41329.53 and
41329.55 and in accordance with the following schedule:
(1) For the 2005-06 fiscal year, an amount not less than the
amount that was received by the Compton Community College District
for the attendance of full-time equivalent students for the 2004-05
fiscal year.
(2) For the 2006-07 fiscal year, an amount not less than 90
percent of the amount that was received by the Compton Community
College District for the attendance of full-time equivalent students
for the 2004-05 fiscal year.
(3) For the 2007-08 fiscal year, an amount not less than 80
percent of the amount that was received by the Compton Community
College District for the attendance of full-time equivalent students
for the 2004-05 fiscal year.
(4) For the 2008-09 fiscal year, an amount not less than 70
percent of the amount that was received by the Compton Community
College District for the attendance of full-time equivalent students
for the 2004-05 fiscal year.
(b) In allocating funds for categorical aid to the Compton
Community College District, the Chancellor of the California
Community Colleges shall treat the Compton Community Educational
Center as a separate college.
(c) The Compton Community College District shall not be subject to
Section 84362 for the 2003-04 fiscal year to the 2008-09 fiscal
year, inclusive.
(d) Should the loss of accreditation by the Compton Community
College result in a lapse of federal financial assistance to
otherwise eligible students before their eligibility is recognized
through the partner district, the Compton Community College District
may use a portion of the proceeds from the loan described in Section
41329.58 to provide comparable amounts of assistance to eligible
students. This replacement funding shall not extend beyond the end of
the term during which the lapse of federal funding occurred.
(e) The provisions of subdivision (a) shall be used solely to
determine the apportionment funding to be allocated to the Compton
Community College District. In computing statewide entitlements to
funding based upon the attendance of full-time equivalent students,
neither the Compton Community College District nor its partner
district shall be credited with more full-time equivalent students
for the Compton Community College District than were actually
enrolled in attendance. It is the intent of the Legislature that any
amounts necessary to make the apportionments required pursuant to
subdivision (a) shall be drawn from the total statewide funding
available for community college apportionments.
74296. Notwithstanding any other provision of law:
(a) In any action in which a court finds that any provision of
this article is unlawful, or in any action challenging the
implementation of this article, the Board of Governors of the
California Community Colleges, the partner district, the Compton
Community College District, and their respective officers, employees,
and agents, are immune from the imposition of any award of money
damages, including the award of attorney's fees, except to the extent
that any liability for those claims arises from the gross negligence
or willful misconduct of the party claiming the immunity.
(b) The state shall, from funds specifically appropriated for that
purpose, indemnify and defend the partner district from and against
any claims, other than claims based upon gross negligence or willful
misconduct, arising out of its participation in the activities
specified in this article.
SEC. 12. Section 63049.67 of the Government Code is amended to
read:
63049.67. (a) Notwithstanding any other provision of this
division, a financing of emergency apportionments upon the request of
a school district pursuant to Article 2.7 (commencing with Section
41329.50) of Chapter 3 of Part 24 of the Education Code, is deemed to
be in the public interest and eligible for financing by the bank.
Article 3 (commencing with Section 63041), Article 4 (commencing with
Section 63042) and Article 5 (commencing with Section 63043) do not
apply to the financing provided by the bank in connection with an
emergency apportionment.
(b) The bank may issue bonds pursuant to Chapter 5 (commencing
with Section 63070) and provide the proceeds to a school district
pursuant to a lease agreement. The proceeds may be used as an
emergency apportionment, to reimburse the interim emergency
apportionment from the General Fund authorized pursuant to
subdivision (b) of Section 41329.52 of the Education Code, or to
refund bonds previously issued under this section. Bond proceeds may
also be used to fund necessary reserves, capitalized interest, credit
enhancement costs, and costs of issuance.
(c) Bonds issued under this article are not deemed to constitute a
debt or liability of the state or of any political subdivision of
the state, other than a limited obligation of the bank, or a pledge
of the faith and credit of the state or of any political subdivision.
All bonds issued under this article shall contain on the face of the
bonds a statement to the same effect.
(d) Any fund or account established in connection with the bonds
shall be established outside of the centralized treasury system.
Notwithstanding any other law, the bank shall select the financing
team and the trustee for the bonds, and the trustee shall be a
corporation or banking association authorized to exercise corporate
trust powers.
(e) Pursuant to Section 41329.55 of the Education Code, a school
district other than the Compton Community College District shall
instruct the Controller to repay the lease from moneys in the State
School Fund designated for apportionment to the school district.
Pursuant to Section 41329.55, if the school district is the Compton
Community College District, the Controller shall be instructed to
repay the lease from moneys in Section B of the State School Fund.
Any amounts necessary to make this repayment shall be drawn from the
total statewide funding available for community college apportionment
consisting of funds in Section B of the State School Fund.
Thereafter the Controller shall transfer to Section B of the State
School Fund, either in a single or multiple transfers, an amount
equal to the total repayment, which amount shall be transferred from
the amount designated for apportionment to the Compton Community
College District from the State School Fund. If these transfers from
the district prove inadequate to repay any repayments for any reason,
the Compton Community College District is required to use any
revenue sources available to it for transfer and repayment purposes.
(f) Notwithstanding any other law, as long as any bonds issued
pursuant to this section are outstanding, the following requirements
apply:
(1) The school district for which the bonds were issued is not
eligible to be a debtor in a case under Chapter 9 of the United
States Bankruptcy Code, as it may be amended from time to time, and
no governmental officer or organization is or may be empowered to
authorize the school district to be a debtor under that chapter.
(2) It is the intent of the Legislature that the Legislature
should not in the future abolish the Compton Community College
District or take any action that would prevent the Compton Community
College from entering into or performing binding agreements or
invalidate any prior binding agreements of the Compton Community
College District, where invalidation may have a material adverse
effect on the bonds issued pursuant to this section.
(3) The Compton Community College District shall not be
reorganized or merged with another community college district unless
all of the following apply:
(A) The successor district becomes by operation of law the owner
of all property previously owned by the Compton Community College
District.
(B) Any agreement entered into by the Compton Community College
District in connection with bonds issued pursuant to this section are
assumed by the successor district.
(C) The apportionment authorized by subdivision (e) remains in
effect.
(D) Receipt by the bank of an opinion of bond counsel that the
bonds issued for the Compton Community College District will remain
tax exempt following the reorganization or merger.
(g) Nothing in this section limits the authority of the
Legislature to abolish the Compton Community College District when
bonds issued for that district are no longer outstanding. Further,
the Legislature may provide for the redemption or defeasance of the
bonds at any time so that no bonds are outstanding. If the
Legislature provides for the redemption or defeasance of the bonds
issued for the Compton Community College District in order to abolish
that district, it is the intent of the Legislature that the funds
required for the redemption or defeasance should be appropriated from
Section B of the State School Fund.
(h) The bank may enter into contracts or agreements with banks,
insurers, or other financial institutions or parties that it
determines are necessary or desirable to improve the security and
marketability of, or to manage interest rates or other risks
associated with, the bonds issued pursuant to this section. The bank
may pledge apportionments made by the Controller directly to the bond
trustee pursuant to Section 41329.55 of the Education Code as
security for repayment of any obligation owed to a bank, insurer, or
other financial institution pursuant to this subdivision.
SEC. 13. It is the intent of the Legislature that the funds
provided in Item 6110-107-0001 of Section 2.00 of the annual Budget
Act for the County Office Fiscal Crisis and Management Assistance
Team (FCMAT) be available for FCMAT to undertake activities related
to community colleges as authorized pursuant to Sections 84040 and
84041 of the Education Code.
SEC. 14. The Legislature finds and declares that, due to the
unique circumstances relating to the accreditation status of Compton
Community College, a general statute cannot be made applicable, and
the enactment of Sections 7, 8, 9, and 11 of this act as a special
statute is therefore necessary.
SEC. 15. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
this act provides for offsetting savings to local agencies or school
districts that result in no net costs to the local agencies or school
districts, within the meaning of Section 17556 of the Government
Code.
SEC. 16. 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 for educational programs and services to continue in the
Compton Community College District to address financial hardships and
accreditation challenges in time for the commencement of the 2006-07
academic year, it is necessary that this act take effect
immediately.