Amended in Assembly April 24, 2014

California Legislature—2013–14 Regular Session

Assembly BillNo. 2087


Introduced by Assembly Member Ammiano

February 20, 2014


An act to amend Sectionbegin delete 70901end deletebegin insert 84040end insert of the Education Code, relating to community colleges.

LEGISLATIVE COUNSEL’S DIGEST

AB 2087, as amended, Ammiano. Community colleges: Board of Governors of the California Community Colleges.

Existing law establishes the California Community Colleges, under the administration of the Board of Governors of the California Community Colleges, as one of the segments of public postsecondary education in this state.begin delete Existing law specifies the duties of the board of governors, including the duty to provide assistance when community college districts encounter severe management difficulties.end deletebegin insert Existing law requires the board of governors to adopt criteria and standards for periodic assessment of the fiscal condition of community college districts. Existing law requires the board of governors to develop, by regulation, appropriate procedures and actions for districts that fail to achieve fiscal stability or that fail to comply with the board of governors’ recommendations. Existing law authorizes these procedures and remedies to include the appointment of a special trustee to manage the community college district.end insert

begin delete

This bill would prohibit the board, when exercising its duty to provide assistance when community college districts encounter severe management difficulties, from usurping, transfering, or limiting, in any way, the powers of the governing boards of these districts, as specified.

end delete
begin insert

This bill would require that the regulations pursuant to which the board may appoint a special trustee to manage a community college district provide specific benchmarks to indicate the presence of local capacity to resume management of the community college district and clear standards that provide for meaningful consultation by a special trustee with the community college district prior to decisionmaking.

end insert

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 84040 of the end insertbegin insertEducation Codeend insertbegin insert is amended
2to read:end insert

3

84040.  

(a) It is the intent of the Legislature to encourage sound
4fiscal management practices among community college districts
5for the most efficient and effective use of public funds for the
6education of community college students by strengthening fiscal
7accountability at the district and state levels.

8(b) The governing board of each community college district
9shall provide for an annual audit of all funds, books, and accounts
10of the district in accordance with regulations of the board of
11governors. The audit shall be made by certified public accountants
12licensed by the California Board of Accountancy. In the event the
13governing board of a community college district fails to provide
14for an audit, the board of governors shall provide for an audit, and
15if the board of governors fails or is unable to make satisfactory
16arrangements for such an audit, the Department of Finance shall
17make arrangements for the audit. The cost of any audit described
18above shall be paid from district funds.

19(c) The board of governors shall adopt criteria and standards
20for periodic assessment of the fiscal condition of community
21college districts, andbegin delete theseend deletebegin insert suchend insert regulations regarding the review
22and improvement of district fiscal conditions as necessary to
23encourage sound fiscal management practices. In so doing:

24(1) The governing board of a community college district, as
25required by regulations of the board of governors, shall periodically
26 report information to the board of governors regarding the fiscal
27condition of the district.

28(2) The board of governors, by regulation, shall develop
29standards for district maintenance of sound fiscal conditions. The
P3    1regulations shall authorize a board comprehensive management
2review of any community college district which, after assessing
3itself or being assessed in accordance with board criteria and
4standards, is shown to be experiencing fiscal difficulty. On the
5basis of the findings of the management review, the board of
6governors may recommend appropriate changes in a district’s
7management practices.

8(3) The board of governors, by regulation, shall develop
9appropriate procedures and actions for districts that fail to achieve
10fiscal stability or that fail to comply with the board of governors’
11recommendations. The procedures and remedies may include the
12appointment of a special trustee to manage thebegin insert community collegeend insert
13 district.begin insert The regulations pursuant to which the board of governors
14may appoint a special trustee to manage the community college
15district shall include specific benchmarks to indicate the presence
16of local capacity to resume management of the community college
17district and clear standards that provide for meaningful
18consultation by a special trustee with the community college district
19prior to decisionmaking.end insert
The board of governors shall be
20authorized to reduce or withhold apportionment to districts to pay
21for the cost of the special trustee, management review, or other
22extraordinary costs resulting from the district’s fiscal difficulties
23and to ensure the stabilization of the district’s financial condition.

24(4) The board of governors shall report to the chairs of the
25educational policy and fiscal committees of both houses of the
26Legislature, the Director of Finance, and the Governor any
27corrective action taken by the district and any action taken against
28the district pursuant to paragraph (3).

begin delete
29

SECTION 1.  

Section 70901 of the Education Code, as amended
30by Section 2 of Chapter 112 of the Statutes of 2011, is amended
31to read:

32

70901.  

(a) The Board of Governors of the California
33Community Colleges shall provide leadership and direction in the
34continuing development of the California Community Colleges as
35an integral and effective element in the structure of public higher
36education in the state. The work of the board of governors shall at
37all times be directed to maintaining and continuing, to the
38maximum degree permissible, local authority and control in the
39administration of the California Community Colleges.

P4    1(b) Subject to, and in furtherance of, subdivision (a), and in
2consultation with community college districts and other interested
3parties as specified in subdivision (e), the board of governors shall
4provide general supervision over community college districts, and
5shall, in furtherance of those purposes, perform the following
6functions:

7(1) Establish minimum standards as required by law, including,
8but not limited to, the following:

9(A) Minimum standards to govern student academic standards
10relating to graduation requirements and probation, dismissal, and
11readmission policies.

12(B) Minimum standards for the employment of academic and
13administrative staff in community colleges.

14(C) Minimum standards for the formation of community colleges
15and community college districts.

16(D) Minimum standards for credit and noncredit classes.

17(E) Minimum standards governing procedures established by
18governing boards of community college districts to ensure faculty,
19staff, and students the right to participate effectively in community
20college district and college governance, and the opportunity to
21express their opinions at the campus level and to ensure that these
22opinions are given every reasonable consideration, and the right
23of academic senates to assume primary responsibility for making
24recommendations in the areas of curriculum and academic
25standards.

26(2) Evaluate and issue annual reports on the fiscal and
27educational effectiveness of community college districts according
28to outcome measures cooperatively developed with those
29community college districts, and provide assistance when
30community college districts encounter severe management
31difficulties; however, the board shall not usurp, transfer, or limit,
32in any way, the powers of the governing boards of community
33college districts as specified in Section 70902.

34(3) Conduct necessary systemwide research on community
35colleges and provide appropriate information services, including,
36but not limited to, definitions for the purpose of uniform reporting,
37collection, compilation, and analysis of data for effective planning
38and coordination, and dissemination of information.

P5    1(4) Provide representation, advocacy, and accountability for the
2California Community Colleges before state and national legislative
3and executive agencies.

4(5) Administer state support programs, both operational and
5capital outlay, and those federally supported programs for which
6the board of governors has responsibility pursuant to state or federal
7law. In so doing, the board of governors shall do the following:

8(A) (i) Annually prepare and adopt a proposed budget for the
9California Community Colleges. The proposed budget shall, at a
10minimum, identify the total revenue needs for serving educational
11needs within the mission, the amount to be expended for the state
12general apportionment, the amounts requested for various
13categorical programs established by law, the amounts requested
14for new programs and budget improvements, and the amount
15requested for systemwide administration.

16(ii) The proposed budget for the California Community Colleges
17shall be submitted to the Department of Finance in accordance
18with established timelines for development of the annual Budget
19Bill.

20(B) To the extent authorized by law, establish the method for
21determining and allocating the state general apportionment.

22(C) Establish space and utilization standards for facility planning
23in order to determine eligibility for state funds for construction
24purposes.

25(6) Establish minimum conditions entitling community college
26districts to receive state aid for support of community colleges. In
27so doing, the board of governors shall establish and carry out a
28periodic review of each community college district to determine
29whether it has met the minimum conditions prescribed by the board
30of governors.

31(7) Coordinate and encourage interdistrict, regional, and
32statewide development of community college programs, facilities,
33and services.

34(8) Facilitate articulation with other segments of higher
35education with secondary education.

36(9) Review and approve comprehensive plans for each
37community college district. The plans shall be submitted to the
38board of governors by the governing board of each community
39college district.

P6    1(10) Review and approve all educational programs offered by
2community college districts, and all courses that are not offered
3as part of an educational program approved by the board of
4governors.

5(11) Exercise general supervision over the formation of new
6community college districts and the reorganization of existing
7community college districts, including the approval or disapproval
8of plans therefor.

9(12) Notwithstanding any other provision of law, be solely
10responsible for establishing, maintaining, revising, and updating,
11as necessary, the uniform budgeting and accounting structures and
12procedures for the California Community Colleges.

13(13) Establish policies regarding interdistrict attendance of
14students.

15(14) Advise and assist governing boards of community college
16districts on the implementation and interpretation of state and
17federal laws affecting community colleges.

18(15) Contract for the procurement of goods and services, as
19necessary.

20(16) Carry out other functions as expressly provided by law.

21(c) Subject to, and in furtherance of, subdivision (a), the board
22of governors shall have full authority to adopt rules and regulations
23necessary and proper to execute the functions specified in this
24section as well as other functions that the board of governors is
25expressly authorized by statute to regulate.

26(d) Wherever in this section or any other statute a power is
27vested in the board of governors, the board of governors, by a
28majority vote, may adopt a rule delegating that power to the
29chancellor, or any officer, employee, or committee of the California
30Community Colleges, or community college district, as the board
31of governors may designate. However, the board of governors
32shall not delegate any power that is expressly made nondelegable
33by statute. Any rule delegating authority shall prescribe the limits
34of delegation.

35(e) In performing the functions specified in this section, the
36board of governors shall establish and carry out a process for
37consultation with institutional representatives of community college
38districts so as to ensure their participation in the development and
39review of policy proposals. The consultation process shall also
40afford community college organizations, as well as interested
P7    1individuals and parties, an opportunity to review and comment on
2proposed policy before it is adopted by the board of governors.

3(f) This section shall become operative on January 1, 2014.

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