BILL NUMBER: AB 1199	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 24, 2013
	AMENDED IN ASSEMBLY  MAY 1, 2013
	AMENDED IN ASSEMBLY  APRIL 16, 2013

INTRODUCED BY   Assembly Member Fong

                        FEBRUARY 22, 2013

   An act to add Section 84750.9 to the Education Code, relating to
community colleges, and declaring the urgency thereof, to take effect
immediately.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1199, as amended, Fong. Community colleges: funding.
   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.
   Existing law requires the board of governors to develop criteria
and standards, in accordance with specified statewide minimum
requirements, for the purposes of making the annual budget request
for the California Community Colleges to the Governor and the
Legislature and allocating state general apportionment revenues.
Those statewide minimum requirements include, among other things, a
requirement that the calculations of each community college district'
s revenue level for each fiscal year be based on specified criteria,
with revenue adjustments being made for increases or decreases in
full-time equivalent students (FTES) for specified purposes.
   This bill would require the board of governors to adopt a
stabilization formula for calculating a community college district's
revenue level for each fiscal year, which would provide for revenue
adjustments if certain conditions are met, including that the
community college district or a campus of the district is subject to
a probation or a "show cause" accreditation sanction, the district
has identified a new funding source sufficient for the specified
payment of any fund liability, and the district  develops
  submits  an improvement plan  certified
by   to  the Chancellor of the California Community
Colleges.
   Under existing law, for credit and noncredit instruction,
decreases in FTES are required to result in revenue reductions
beginning in the year following the initial year of decrease in FTES,
and at the district's marginal funding per FTES.
    This bill would require the adopted stabilization formula to
provide that, for a qualifying community college district, decreases
in FTES are required to result in prescribed adjustments in district
revenues beginning in the year following the initial year in which
the district qualifies for stabilization funding.
   This bill would declare that it is to take effect immediately as
an urgency statute.
   Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  Section 84750.9 is added to the Education Code, to
read:
   84750.9.  (a) The board of governors shall adopt a stabilization
formula for calculating a qualifying community college district's
revenue level for a qualifying fiscal year. This formula shall
provide for revenue adjustments if all of the following conditions
are met:
   (1) The community college district or a campus of the district is
subject to a probation or a "show cause" accreditation sanction.
   (2) The community college district has identified a new funding
source sufficient for the full payment of any fund liability in equal
installments over the next two years.
   (3) The community college district  develops 
 submits an improvement plan  certified by 
 to  the Chancellor of the California Community Colleges
that  complies with all   includes both  of
the following: 
   (A) The plan requires a six-month accreditation compliance report
from the board of trustees of the community college district.
 
   (B) The 
    (A)     A six-month  accreditation
compliance  report is   report,  signed by
the chancellor of the community college district and passed by the
board of trustees of the community college  district.

    (C)     The
accreditation compliance report   district, which 
details the progress the community college district has made before
the date of the  report and includes a   report.

    (B)     A  timetable for the
completion of a full and satisfactory accreditation response.
   (b) The stabilization formula adopted pursuant to subdivision (a)
shall provide that, for a qualifying community college district,
decreases in full-time equivalent students shall result in
adjustments in district revenues as follows:
   (1) Decreases in full-time equivalent students shall result in
revenue reductions beginning in the year following the initial year
in which the district qualifies for stabilization funding pursuant to
subdivision (a) at the district's marginal funding per full-time
equivalent student.
   (2) Revenue reductions in the second and third year after the
district qualifies for stabilization funding pursuant to subdivision
(a) shall include payments by the district of equal installments in
each of these years to cover the difference between the revenue the
district would have received pursuant to subparagraph (B) of
paragraph (6) of subdivision (d) of Section 84750.5 and what the
district did receive pursuant to paragraph (1).
  SEC. 2.  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:
   Accreditation problems facing community colleges threaten basic
services and require immediate response.