BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                       AB 986


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          ASSEMBLY THIRD READING


          AB  
          986 (Gipson)


          As Amended  April 23, 2015


          Majority vote


           ------------------------------------------------------------------- 
          |Committee       |Votes |Ayes                |Noes                  |
          |                |      |                    |                      |
          |                |      |                    |                      |
          |----------------+------+--------------------+----------------------|
          |Higher          |11-2  |Medina, Baker,      |Chávez, Harper        |
          |Education       |      |Bloom, Irwin,       |                      |
          |                |      |Jones-Sawyer,       |                      |
          |                |      |Levine, Linder,     |                      |
          |                |      |Low, Santiago,      |                      |
          |                |      |Weber, Williams     |                      |
          |                |      |                    |                      |
          |----------------+------+--------------------+----------------------|
          |Appropriations  |13-4  |Gomez, Bonta,       |Bigelow, Gallagher,   |
          |                |      |Calderon, Chang,    |Jones, Wagner         |
          |                |      |Daly, Eggman,       |                      |
          |                |      |Eduardo Garcia,     |                      |
          |                |      |Gordon, Holden,     |                      |
          |                |      |Quirk, Rendon,      |                      |
          |                |      |Weber, Wood         |                      |
          |                |      |                    |                      |
          |                |      |                    |                      |
           ------------------------------------------------------------------- 


          SUMMARY:  Requires the Chancellor of the California Community  








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          Colleges (CCC) to provide a report to the Legislature regarding  
          Compton Community College District (Compton CCD).  Specifically,  
          this bill:  


          1)Requires the CCC Chancellor to report to the Legislature  
            concerning the priorities identified in each Fiscal Crisis and  
            Management Assistance Team (FCMAT) report of Compton CCD and  
            provide a response on how the Chancellor intends to resolve  
            issues identified in the FCMAT report in a timely manner.


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


          3)Requires the report(s) to be submitted within 150 days from  
            issuance of each FCMAT report.


          EXISTING LAW:  


          1)In 2004, AB 61 (Dymally), Chapter 139, Statutes of 2004,  
            authorized the 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 (EDC) Section 71093)


          2)In 2005, AB 318 (Dymally), Chapter 50, Statutes of 2005,  
            provided an emergency appropriation of $30 million from the  
            General Fund to the CCC Board of Governors for apportionment to  








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            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 to 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)


          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), Chapter 466, Statutes of  
            2014, was enacted to require the CCC Board of Governors 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:  According to the Assembly Appropriations  
          Committee, General Fund costs of $50,000 to $75,000 for the  
          Chancellor's Office to prepare and submit each report to the  
          Legislature within 150 days of the release of each FCMAT progress  
          report, as required.


          COMMENTS:  Background.  On May 21, 2004, the CCC Chancellor issued  








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          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.  
          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  








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          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 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.   








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          Analysis Prepared by:                                               
                          Laura Metune / HIGHER ED. / (916) 319-3960  FN:  
          0000744