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 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 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 thatbegin delete provide forend deletebegin insert requireend insert meaningful consultation by a special trusteebegin insert, or his or her designee,end insert 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 84040 of the Education Code is amended
2to read:
(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, and such regulations regarding the review and
22improvement of district fiscal conditions as necessary to encourage
23sound 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
30regulations shall authorize a board comprehensive management
31review of any community college district which, after assessing
32itself or being assessed in accordance with board criteria and
33standards, is shown to be experiencing fiscal difficulty. On the
P3 1basis of the findings of the management review, the board of
2governors may recommend appropriate changes in a district’s
3management practices.
4(3) The board of governors, by regulation, shall develop
5appropriate procedures and actions for districts that fail to achieve
6fiscal stability or that fail to
comply with the board of governors’
7recommendations. The procedures and remedies may include the
8appointment of a special trustee to manage the community college
9district. The regulations pursuant to which the board of governors
10may appoint a special trustee to manage the community college
11district shall include specific benchmarks to indicate the presence
12of local capacity to resume management of the community college
13district and clear standards thatbegin delete provide forend deletebegin insert requireend insert meaningful
14consultation by a special trusteebegin insert, or his or her designee,end insert with the
15community college district prior to decisionmaking. The board of
16governors shall be authorized
to reduce or withhold apportionment
17to districts to pay for the cost of the special trustee, management
18review, or other extraordinary costs resulting from the district’s
19fiscal difficulties and to ensure the stabilization of the district’s
20financial condition.
21(4) The board of governors shall report to the chairs of the
22educational policy and fiscal committees of both houses of the
23Legislature, the Director of Finance, and the Governor any
24corrective action taken by the district and any action taken against
25the district pursuant to paragraph (3).
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