BILL ANALYSIS                                                                                                                                                                                                    



                                                                     AB 986


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          Date of Hearing:  April 21, 2015


                       ASSEMBLY COMMITTEE ON HIGHER EDUCATION


                                 Jose Medina, Chair


          AB 986  
          (Gipson) - As Amended March 26, 2015


          SUBJECT:  Community Colleges:  Compton Community College  
          District:  report


          SUMMARY:  Requires the special trustee of the Compton Community  
          College District (CCD) to provide a report to the Legislature.   
          Specifically, this bill:  


          1)Requires the special trustee of the Compton CCD to report to  
            the Legislature concerning the priorities identified in each  
            Fiscal Crisis and Management Assistance Team (FCMAT) report  
            and provide a response on how the special trustee intends to  
            resolve issues identified in the FCMAT report in a timely  
            manner, not to exceed 150 days from receipt of the report.


          2)Provides that in any instance that there is a decline in  
            performance, the special trustee shall specifically identify  
            strategies for ensuring progress in its response to that  
            report.


          3)Provides for reimbursement if the Commission on State Mandates  
            determines the provisions of this bill contain mandated local  
            costs. 








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          EXISTING LAW:  


          1)In 2004, AB 61 (Dymally) authorized the California Community  
            College (CCC) Board of Governors to authorize the CCC  
            Chancellor to suspend the authority of the Compton CCD Board  
            of Trustees and appoint a special trustee, at expense to  
            Compton CCD, to manage operations.  The law establishes that  
            the special trustee remains in place until the Chancellor,  
            FCMAT, the Director of Finance, and the Governor concur with  
            the special trustee that the Compton CCD has, for two  
            consecutive years, met the requirements of the assessment and  
            recovery plan.  (Education Code Section 71093)


          2)In 2005, AB 318 (Dymally) provided an emergency appropriation  
            of $30,000,000 from the General Fund to the CCC Board of  
            Governors for apportionment to the Compton CCD to facilitate  
            the establishment of a partnership with another CCC district  
            to continue educational programs at the Compton CCD campus,  
            following the loss of Compton CCD's accreditation.  (EDC  
            Sections 41329.58 and 74292-74296)


          3)AB 318 also required FCMAT to conduct an audit by October 30,  
            2006, of alleged fraud, misappropriation of funds, and illegal  
            fiscal practices at Compton CCD and report to the CCC Board of  
            Governors and the Department of Finance.  FCMAT was required  
            to, by January 31, 2007, conduct a comprehensive audit and  
            prepare a recovery plan.  Finally, FCMAT was required to file  
            regular written status reports to the Legislature and  
            Governor, among others, regarding Compton CCD's progress  
            toward addressing deficiencies identified by FCMAT and the  
            Accrediting Commission for Community and Junior Colleges  
            (ACCJC).  (EDC Section 41329.59)










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          4)In 2014, following the potential loss of accreditation and the  
            appointment of a special trustee at San Francisco Community  
            College District, AB 2087 (Ammiano) was enacted to require the  
            CCC BOG to ensure regulations governing the appointment of a  
            special trustee to manage a community college district include  
            specific benchmarks to indicate the presence of local capacity  
            to resume management of the district and clear standards that  
            require meaningful consultation by a special trustee with the  
            district prior to decision making. (EDC Section 84040)


          FISCAL EFFECT:  Unknown


          COMMENTS:  Background.  On May 21, 2004, the CCC Chancellor  
          issued Executive Order No. 2004-01, to initiate state  
          intervention to resolve long-standing fiscal problems at Compton  
          CCD.  A full-time special trustee was appointed and undertook a  
          number of activities in an attempt to resolve the Compton CCD's  
          fiscal problems.  On January 31, 2005, the Accrediting  
          Commission of Community and Junior Colleges (ACCJC) announced it  
          had placed Compton CCD on "show cause" status and required the  
          district to correct a series of deficiencies related to fiscal  
          management and stability.  On June 17, 2005, ACCJC announced it  
          had reviewed Compton CCDs "show cause report" and determined the  
          district had not adequately addressed deficiencies and  
          terminated accreditation effective August 19, 2005.   


          Federal and state laws provide that the termination of  
          accreditation results in the immediate loss of all state and  
          federal funds, including general funds and categorical  
          apportionment revenues, financial aid, and maintenance funds.   
          In order to ensure instructional services could continue at the  
          Compton CCD campus, on August 21, 2006, the El Camino Community  
          College District (ECCCD) approved a partnership agreement to  
          establish the Compton Center.  The agreement for the Compton  
          Center includes operations under the direct management of El  
          Camino CCD through a vice president on the Compton Center site.  








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          The vice president reports to the superintendent/president of El  
          Camino CCD for the operational aspects of the Compton Center,  
          including its instructional programs and student services.   
          Business services, facilities, personnel, governance components  
          and other programs and services are managed by the Compton CCD's  
          chief executive officer (CEO). The CEO reports to the state  
          special trustee for the Compton CCD.  The Compton CCD  
          five-member elected Board of Trustees remains in place, but its  
          role is limited to an advisory capacity.


          Purpose of this bill.  According to the author, in order for the  
          Compton CCD Board of Trustees to be able to fully govern  
          autonomously, they must be provided every opportunity to be a  
          direct stakeholder and hold similar capacity to what they will  
          be expected to assume once they are accredited.  The author  
          notes that this bill is intended to make progress toward the  
          long-term goal of returning governing authority to the Compton  
          CCD Board of Trustees.


          FCMAT progress report.  The initial FCMAT comprehensive review  
          of Compton CCD took place in April 2007, and assessed the  
          Compton CCD using 335 professional and legal standards in five  
          areas of district operations. The standards were aligned to the  
          four standards of the ACCJC to develop specific recommendations  
          for operational improvements that would help prepare the  
          district to return to fiscal solvency and local governance and  
          enhance its readiness to re-establish accreditation.  


          In October of 2014, FCMAT released its 8th progress report on  
          Compton CCD, as is required under the provisions of AB 318.   
          According to FCMAT, the process for the Compton CCD requires  
          much time and improvement and will likely proceed incrementally.  
          FCMAT anticipates that the Compton CCD will continue to make the  
          progress necessary for an eventual return to local governance.   
          However, at the time of the 2014 report, the required criteria  
          had not been met and governance authority could not be returned  








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          to the local Board of Trustees.  FCMAT noted that the return of  
          legal powers and duties to the elected board is contingent on  
          meeting specified requirements.


          ACCJC progress.  ECCCD and Compton CCD are working together to  
          obtain independent accreditation for the El Camino Compton  
          Center.  In January of 2015, the Compton Center submitted an  
          eligibility application to ACCJC.  This application is the first  
          step toward obtaining independent accreditation of the Compton  
          Center.  Once independent accreditation is obtained and Compton  
          CCD has met all state requirements for returning local control,  
          both processes may take several more years, the ECCCD and  
          Compton CCD could seek to apply for a substantive change from  
          ACCJC to reflect the change in governance.   


          Suggested amendments.  


          1)As previously outlined, the special trustee is appointed by  
            the CCC Board of Governors and reports to the CCC Chancellor.   
            Therefore, committee staff recommends this bill be amended to  
            establish that the report required to be completed pursuant to  
            this bill be compiled and submitted by the CCC Chancellor  
            rather than the special trustee.



          2)A clarifying amendment is necessary to require the report to  
            be submitted to the Legislature within 150 days following the  
            issuance of each FCMAT report. 
          REGISTERED SUPPORT / OPPOSITION:




          Support









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          None on File




          Opposition


          None on File




          Analysis Prepared by:Laura Metune / HIGHER ED. / (916) 319-3960