BILL NUMBER: AB 2087 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 24, 2014
INTRODUCED BY Assembly Member Ammiano
FEBRUARY 20, 2014
An act to amend Section 70901 84040
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. Existing law specifies the duties
of the board of governors, including the duty to provide assistance
when community college districts encounter severe management
difficulties. 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.
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.
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.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 84040 of the
Education Code is amended to read:
84040. (a) It is the intent of the Legislature to encourage sound
fiscal management practices among community college districts for
the most efficient and effective use of public funds for the
education of community college students by strengthening fiscal
accountability at the district and state levels.
(b) The governing board of each community college district shall
provide for an annual audit of all funds, books, and accounts of the
district in accordance with regulations of the board of governors.
The audit shall be made by certified public accountants licensed by
the California Board of Accountancy. In the event the governing board
of a community college district fails to provide for an audit, the
board of governors shall provide for an audit, and if the board of
governors fails or is unable to make satisfactory arrangements for
such an audit, the Department of Finance shall make arrangements for
the audit. The cost of any audit described above shall be paid from
district funds.
(c) The board of governors shall adopt criteria and standards for
periodic assessment of the fiscal condition of community college
districts, and these such regulations
regarding the review and improvement of district fiscal conditions as
necessary to encourage sound fiscal management practices. In so
doing:
(1) The governing board of a community college district, as
required by regulations of the board of governors, shall periodically
report information to the board of governors regarding the fiscal
condition of the district.
(2) The board of governors, by regulation, shall develop standards
for district maintenance of sound fiscal conditions. The regulations
shall authorize a board comprehensive management review of any
community college district which, after assessing itself or being
assessed in accordance with board criteria and standards, is shown to
be experiencing fiscal difficulty. On the basis of the findings of
the management review, the board of governors may recommend
appropriate changes in a district's management practices.
(3) The board of governors, by regulation, shall develop
appropriate procedures and actions for districts that fail to achieve
fiscal stability or that fail to comply with the board of governors'
recommendations. The procedures and remedies may include the
appointment of a special trustee to manage the community college
district. The regulations pursuant to which the board of
governors may appoint a special trustee to manage the community
college district shall include 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. The board of governors shall be
authorized to reduce or withhold apportionment to districts to pay
for the cost of the special trustee, management review, or other
extraordinary costs resulting from the district's fiscal difficulties
and to ensure the stabilization of the district's financial
condition.
(4) The board of governors shall report to the chairs of the
educational policy and fiscal committees of both houses of the
Legislature, the Director of Finance, and the Governor any corrective
action taken by the district and any action taken against the
district pursuant to paragraph (3).
SECTION 1. Section 70901 of the Education Code,
as amended by Section 2 of Chapter 112 of the Statutes of 2011, is
amended to read:
70901. (a) The Board of Governors of the California Community
Colleges shall provide leadership and direction in the continuing
development of the California Community Colleges as an integral and
effective element in the structure of public higher education in the
state. The work of the board of governors shall at all times be
directed to maintaining and continuing, to the maximum degree
permissible, local authority and control in the administration of the
California Community Colleges.
(b) Subject to, and in furtherance of, subdivision (a), and in
consultation with community college districts and other interested
parties as specified in subdivision (e), the board of governors shall
provide general supervision over community college districts, and
shall, in furtherance of those purposes, perform the following
functions:
(1) Establish minimum standards as required by law, including, but
not limited to, the following:
(A) Minimum standards to govern student academic standards
relating to graduation requirements and probation, dismissal, and
readmission policies.
(B) Minimum standards for the employment of academic and
administrative staff in community colleges.
(C) Minimum standards for the formation of community colleges and
community college districts.
(D) Minimum standards for credit and noncredit classes.
(E) Minimum standards governing procedures established by
governing boards of community college districts to ensure faculty,
staff, and students the right to participate effectively in community
college district and college governance, and the opportunity to
express their opinions at the campus level and to ensure that these
opinions are given every reasonable consideration, and the right of
academic senates to assume primary responsibility for making
recommendations in the areas of curriculum and academic standards.
(2) Evaluate and issue annual reports on the fiscal and
educational effectiveness of community college districts according to
outcome measures cooperatively developed with those community
college districts, and provide assistance when community college
districts encounter severe management difficulties; however, the
board shall not usurp, transfer, or limit, in any way, the powers of
the governing boards of community college districts as specified in
Section 70902.
(3) Conduct necessary systemwide research on community colleges
and provide appropriate information services, including, but not
limited to, definitions for the purpose of uniform reporting,
collection, compilation, and analysis of data for effective planning
and coordination, and dissemination of information.
(4) Provide representation, advocacy, and accountability for the
California Community Colleges before state and national legislative
and executive agencies.
(5) Administer state support programs, both operational and
capital outlay, and those federally supported programs for which the
board of governors has responsibility pursuant to state or federal
law. In so doing, the board of governors shall do the following:
(A) (i) Annually prepare and adopt a proposed budget for the
California Community Colleges. The proposed budget shall, at a
minimum, identify the total revenue needs for serving educational
needs within the mission, the amount to be expended for the state
general apportionment, the amounts requested for various categorical
programs established by law, the amounts requested for new programs
and budget improvements, and the amount requested for systemwide
administration.
(ii) The proposed budget for the California Community Colleges
shall be submitted to the Department of Finance in accordance with
established timelines for development of the annual Budget Bill.
(B) To the extent authorized by law, establish the method for
determining and allocating the state general apportionment.
(C) Establish space and utilization standards for facility
planning in order to determine eligibility for state funds for
construction purposes.
(6) Establish minimum conditions entitling community college
districts to receive state aid for support of community colleges. In
so doing, the board of governors shall establish and carry out a
periodic review of each community college district to determine
whether it has met the minimum conditions prescribed by the board of
governors.
(7) Coordinate and encourage interdistrict, regional, and
statewide development of community college programs, facilities, and
services.
(8) Facilitate articulation with other segments of higher
education with secondary education.
(9) Review and approve comprehensive plans for each community
college district. The plans shall be submitted to the board of
governors by the governing board of each community college district.
(10) Review and approve all educational programs offered by
community college districts, and all courses that are not offered as
part of an educational program approved by the board of governors.
(11) Exercise general supervision over the formation of new
community college districts and the reorganization of existing
community college districts, including the approval or disapproval of
plans therefor.
(12) Notwithstanding any other provision of law, be solely
responsible for establishing, maintaining, revising, and updating, as
necessary, the uniform budgeting and accounting structures and
procedures for the California Community Colleges.
(13) Establish policies regarding interdistrict attendance of
students.
(14) Advise and assist governing boards of community college
districts on the implementation and interpretation of state and
federal laws affecting community colleges.
(15) Contract for the procurement of goods and services, as
necessary.
(16) Carry out other functions as expressly provided by law.
(c) Subject to, and in furtherance of, subdivision (a), the board
of governors shall have full authority to adopt rules and regulations
necessary and proper to execute the functions specified in this
section as well as other functions that the board of governors is
expressly authorized by statute to regulate.
(d) Wherever in this section or any other statute a power is
vested in the board of governors, the board of governors, by a
majority vote, may adopt a rule delegating that power to the
chancellor, or any officer, employee, or committee of the California
Community Colleges, or community college district, as the board of
governors may designate. However, the board of governors shall not
delegate any power that is expressly made nondelegable by statute.
Any rule delegating authority shall prescribe the limits of
delegation.
(e) In performing the functions specified in this section, the
board of governors shall establish and carry out a process for
consultation with institutional representatives of community college
districts so as to ensure their participation in the development and
review of policy proposals. The consultation process shall also
afford community college organizations, as well as interested
individuals and parties, an opportunity to review and comment on
proposed policy before it is adopted by the board of governors.
(f) This section shall become operative on January 1, 2014.