Amended in Senate March 19, 2015

Senate Bill No. 232

Introduced by Senator Hall

(Principal coauthor: Assembly Member Burke)

February 13, 2015

An act to amend Section begin delete 52074 end delete begin insert 41326 end insert of the Education Code, relating to school accountability.

LEGISLATIVE COUNSEL’S DIGEST

SB 232, as amended, Hall. School accountability: begin delete local control and accountability plans: end delete California Collaborative for Educational begin delete Excellence. end delete begin insert Excellence: state administrator. end insert

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Existing law authorizes the governing board of a school district to request an emergency apportionment through the Superintendent of Public Instruction if the governing board of a school district determines during a fiscal year that its revenues are less than the amount necessary to meet its current year expenditure obligations. Existing law provides that if a school district accepts an emergency apportionment that exceeds an amount equal to 200% of the amount of the reserve recommended for that school district, as specified, the Superintendent must, among other things, assume all the legal rights, duties, and powers of the governing board of the qualifying school district, as defined, and, in consultation with the county superintendent of schools, appoint an administrator to act on the Superintendent’s behalf. Existing law authorizes the administrator to take certain actions, including, among others, revising the educational program of the qualifying school district to reflect realistic income projections and pupil performance relative to state standards.

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Existing law, on or before July 1, 2014, requires the governing board of each school district and each county board of education to adopt a local control and accountability plan and requires the governing board of each school district and each county board of education to update its local control and accountability plan on or before July 1 of each year. Existing law requires the local control and accountability plan to include certain begin delete elements, end delete begin insert elements end insert and requires the charter begin insert petition end insert for a charter school to include some of those same elements.

Existing law establishes the California Collaborative for Educational Excellence for purposes of advising and assisting school districts, county superintendents of schools, and charter schools in achieving the goals set forth in a local control and accountability plan. Existing law authorizes the Superintendent begin delete of Public Instruction end delete to direct the collaborative to advise and assist a school district, county superintendent of schools, or charter school in specified begin delete circumstances. end delete begin insert circumstances, including upon their request. end insert

This bill would also authorize begin delete the Superintendent to direct the collaborative to advise and assist a school district if end delete the state-appointed begin delete trustee or end delete administrator of begin delete the end delete begin insert a end insert school district begin delete requests that end delete begin insert to request the end insert advice and begin delete assistance. end delete begin insert assistance of the collaborative. 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:

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begin insert SECTION 1. end insert   

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begin insert Section 41326 of the end insert begin insert Education Code end insert begin insert is amended
to read: end insert

41326.  

(a) Notwithstanding any other provision of this code,
the acceptance by a school district of an apportionment made
pursuant to Section 41320 that exceeds an amount equal to 200
percent of the amount of the reserve recommended for that school
district under the standards and criteria adopted pursuant to Section
33127 constitutes the agreement by the school district to the
conditions set forth in this article. Before applying for an
emergency apportionment in the amount identified in this
subdivision, the governing board of a school district shall discuss
the need for that apportionment at a regular or special meeting of
the governing board of the school district and, at that meeting,
shall receive testimony regarding the apportionment from parents,
exclusive representatives of employees of the school district, and
other members of the community. For purposes of this article,
“qualifying school district” means a school district that accepts a
loan as described in this subdivision.

(b) The Superintendent shall assume all the legal rights, duties,
and powers of the governing board of a qualifying school district.
The Superintendent, in consultation with the county superintendent
of schools, shall appoint an administrator to act on his or her behalf
in exercising the authority described in this subdivision in
accordance with all of the following:

(1) The administrator shall serve under the direction and
supervision of the Superintendent until terminated by the
Superintendent at his or her discretion. The Superintendent shall
consult with the county superintendent of schools before
terminating the administrator.

(2) The administrator shall have recognized expertise in
management and finance.

(3) To facilitate the appointment of the administrator and the
employment of necessary staff, for purposes of this section, the
Superintendent is exempt from the requirements of Article 6
(commencing with Section 999) of Chapter 6 of Division 4 of the
Military and Veterans Code and Part 2 (commencing with Section
10100) of Division 2 of the Public Contract Code.

(4) Notwithstanding any other law, the Superintendent may
appoint an employee of the state or the office of the county
superintendent of schools to act as administrator for up to the
duration of the administratorship. During the tenure of his or her
appointment, the administrator, if he or she is an employee of the
state or the office of the county superintendent of schools, is an
employee of the qualifying school district, but shall remain in the
same retirement system under the same plan that has been provided
by his or her employment with the state or the office of the county
superintendent of schools. Upon the expiration or termination of
the appointment, the employee shall have the right to return to his
or her former position, or to a position at substantially the same
level as that position, with the state or the office of the county
superintendent of schools. The time served in the appointment
shall be counted for all purposes as if the administrator had served
that time in his or her former position with the state or the office
of the county superintendent of schools.

(5) Except for an individual appointed as an administrator by
the Superintendent pursuant to paragraph (4), the administrator
shall be a member of the State Teachers’ Retirement System, if
qualified, for the period of service as administrator, unless he or
she elects in writing not to become a member. A person who is a
member or retirant of the State Teachers’ Retirement System at
the time of appointment shall continue to be a member or retirant
of the system for the duration of the appointment. If the
administrator chooses to become a member or is already a member,
the administrator shall be placed on the payroll of the qualifying
school district for purposes of providing appropriate contributions
to the system. The Superintendent may also require the
administrator to be placed on the payroll of the qualifying school
district for purposes of remuneration, other benefits, and payroll
deductions.

(6) For purposes of workers’ compensation benefits, the
administrator is an employee of the qualifying school district,
except that an administrator appointed pursuant to paragraph (4)
may be deemed an employee of the state or office of the county
superintendent of schools, as applicable.

(7) The qualifying school district shall add the administrator as
a covered employee of the qualifying school district for all purposes
of errors and omissions liability insurance policies.

(8) The salary and benefits of the administrator shall be
established by the Superintendent and paid by the qualifying school
district.

(9) The Superintendent or the administrator may employ, on a
short-term basis and at the expense of the qualifying school district,
any staff necessary to assist the administrator, including, but not
limited to, a certified public accountant.

(10) The administrator may do all of the following:

(A) Implement substantial changes in the fiscal policies and
practices of the qualifying school district, including, if necessary,
the filing of a petition under Chapter 9 (commencing with Section
901) of Title 11 of the United States Code for the adjustment of
indebtedness.

(B) Revise the educational program of the qualifying school
district to reflect realistic income projections and pupil performance
relative to state standards.

(C) Encourage all members of the school community to accept
a fair share of the burden of the fiscal recovery of the qualifying
school district.

(D) Consult, for the purposes described in this subdivision, with
the governing board of the qualifying school district, the exclusive
representatives of the employees of the qualifying school district,
parents, and the community.

(E) Consult with, and seek recommendations from, the
Superintendent, the county superintendent of schools, and the
County Office Fiscal Crisis and Management Assistance Team
authorized pursuant to subdivision (c) of Section 42127.8 for
purposes described in this article.

(F) With the approval of the Superintendent, enter into
agreements on behalf of the qualifying school district and, subject
to any contractual obligation of the qualifying school district,
change existing school district rules, regulations, policies, or
practices as necessary for the effective implementation of the
recovery plans referred to in Sections 41327 and 41327.1.

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(G) Request the advice and assistance of the California
Collaborative for Educational Excellence pursuant to paragraph
(1) of subdivision (f) of Section 52074.

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(c) (1) Except as provided for in paragraph (2), the period of
time during which the Superintendent exercises the authority
described in subdivision (b), the governing board of the qualifying
school district shall serve as an advisory body reporting to the
state-appointed administrator, and has no rights, duties, or powers,
and is not entitled to any stipend, benefits, or other compensation
from the qualifying school district.

(2) (A) After one complete fiscal year has elapsed following
the qualifying school district’s acceptance of an emergency
apportionment, the governing board of the qualifying school district
may conduct an annual advisory evaluation of an administrator
for the duration of the administratorship.

(B) An advisory evaluation of an administrator shall focus on
the administrator’s effectiveness in leading the qualifying school
district toward fiscal recovery and improved academic
achievement. Advisory evaluation criteria shall be agreed upon
by the governing board of the qualifying school district and the
administrator before the advisory evaluation. The advisory
evaluation shall include, but not be limited to, all of the following:

(i) Goals and standards consistent with Section 41327.1.

(ii) Commendations in the areas of the administrator’s strengths
and achievements.

(iii) Recommendations for improving the administrator’s
effectiveness in areas of concern and unsatisfactory performance.

(C) An advisory evaluation of an administrator conducted by
the governing board of a qualifying school district shall be
submitted to the Governor, the Legislature, the Superintendent,
and the County Office Fiscal Crisis and Management Assistance
Team.

(3) Upon the appointment of an administrator pursuant to this
section, the district superintendent is no longer an employee of the
qualifying school district.

(4) A determination of the severance compensation for the
district superintendent shall be made pursuant to subdivision (j).

(d) Notwithstanding Section 35031 or any other law, the
administrator, after according the affected employee reasonable
notice and the opportunity for a hearing, may terminate the
employment of a deputy, associate, assistant superintendent, or
other school district level administrator who is employed by a
qualifying school district under a contract of employment signed
or renewed after January 1, 1992, if the employee fails to
document, to the satisfaction of the administrator, that before the
date of the acceptance of the emergency apportionment he or she
either advised the governing board of the qualifying school district,
or his or her superior, that actions contemplated or taken by the
governing board of the qualifying school district could result in
the fiscal insolvency of the qualifying school district, or took other
appropriate action to avert that fiscal insolvency.

(e) The authority of the Superintendent, and the administrator,
under this section shall continue until all of the following occur:

(1) (A) After one complete fiscal year has elapsed following
the qualifying school district’s acceptance of an emergency
apportionment as described in subdivision (a), the administrator
determines, and so notifies the Superintendent and the county
superintendent of schools, that future compliance by the qualifying
school district with the recovery plans approved pursuant to
paragraph (2) is probable.

(B) The Superintendent may return power to the governing
board of the qualifying school district for an area listed in
subdivision (a) of Section 41327.1 if performance under the
recovery plan for that area has been demonstrated to the satisfaction
of the Superintendent.

(2) The Superintendent has approved all of the recovery plans
referred to in subdivision (a) of Section 41327 and the County
Office Fiscal Crisis and Management Assistance Team completes
the improvement plans specified in Section 41327.1 and has
completed a minimum of two reports identifying the qualifying
school district’s progress in implementing the improvement plans.

(3) The administrator certifies that all necessary collective
bargaining agreements have been negotiated and ratified, and that
the agreements are consistent with the terms of the recovery plans.

(4) The qualifying school district has completed all reports
required by the Superintendent and the administrator.

(5) The Superintendent determines that future compliance by
the qualifying school district with the recovery plans approved
pursuant to paragraph (2) is probable.

(f) When the conditions stated in subdivision (e) have been met,
and at least 60 days after the Superintendent has notified the
Legislature, the Department of Finance, the Controller, and the
county superintendent of schools that he or she expects the
conditions prescribed pursuant to this section to be met, the
governing board of the qualifying school district shall regain all
of its legal rights, duties, and powers, except for the powers held
by the trustee provided for pursuant to Article 2 (commencing with
Section 41320). The Superintendent shall appoint a trustee under
Section 41320.1 to monitor and review the operations of the
qualifying school district until the conditions of subdivision (b)
of that section have been met.

(g) Notwithstanding subdivision (f), if the qualifying school
district violates a provision of the recovery plans approved by the
Superintendent pursuant to this article within five years after the
trustee appointed pursuant to Section 41320.1 is removed or after
the emergency apportionment is repaid, whichever occurs later,
or the improvement plans specified in Section 41327.1 during the
period of the trustee’s appointment, the Superintendent may
reassume, either directly or through an administrator appointed in
accordance with this section, all of the legal rights, duties, and
powers of the governing board of the qualifying school district.
The Superintendent shall return to the governing board of the
qualifying school district all of its legal rights, duties, and powers
reassumed under this subdivision when he or she determines that
future compliance with the approved recovery plans is probable,
or after a period of one year, whichever occurs later.

(h) Article 2 (commencing with Section 41320) shall apply
except as otherwise specified in this article.

(i) It is the intent of the Legislature that the legislative budget
subcommittees annually conduct a review of each qualifying school
district that includes an evaluation of the financial condition of the
qualifying school district, the impact of the recovery plans upon
the qualifying school district’s educational program, and the efforts
made by the state-appointed administrator to obtain input from the
community and the governing board of the qualifying school
district.

(j) (1) The district superintendent is entitled to a due process
hearing for purposes of determining final compensation. The final
compensation of the district superintendent shall be between zero
and six times his or her monthly salary. The outcome of the due
process hearing shall be reported to the Superintendent and the
public. The information provided to the public shall explain the
rationale for the compensation.

(2) This subdivision applies only to a contract for employment
negotiated on or after June 21, 2004.

(k) (1) When the Superintendent assumes control over a
qualifying school district pursuant to subdivision (b), he or she
shall, in consultation with the County Office Fiscal Crisis and
Management Assistance Team, review the fiscal oversight of the
qualifying school district by the county superintendent of schools.
The Superintendent may consult with other fiscal experts, including
other county superintendents of schools and regional fiscal teams,
in conducting this review.

(2) Within three months of assuming control over a qualifying
school district, the Superintendent shall report his or her findings
to the Legislature and shall provide a copy of that report to the
Department of Finance. This report shall include findings as to
fiscal oversight actions that were or were not taken and may include
recommendations as to an appropriate legislative response to
improve fiscal oversight.

(3) If, after performing the duties described in paragraphs (1)
and (2), the Superintendent determines that the county
superintendent of schools failed to carry out his or her
responsibilities for fiscal oversight as required by this code, the
Superintendent may exercise the authority of the county
superintendent of schools who has oversight responsibilities for a
qualifying school district. If the Superintendent finds, based on
the report required in paragraph (2), that the county superintendent
of schools failed to appropriately take into account particular types
of indicators of financial distress, or failed to take appropriate
remedial actions in the qualifying school district, the
Superintendent shall further investigate whether the county
superintendent of schools failed to take into account those
indicators, or similarly failed to take appropriate actions in other
school districts with negative or qualified certifications, and shall
provide an additional report on the fiscal oversight practices of the
county superintendent of schools to the appropriate policy and
fiscal committees of each house of the Legislature and the
Department of Finance.

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SECTION 1.  

Section 52074 of the Education Code is amended
to read:

52074.  

(a) The California Collaborative for Educational
Excellence is hereby established.

(b) The purpose of the California Collaborative for Educational
Excellence is to advise and assist school districts, county
superintendents of schools, and charter schools in achieving the
goals set forth in a local control and accountability plan adopted
pursuant to this article.

(c) The Superintendent shall, with the approval of the state
board, contract with a local educational agency, or consortium of
local educational agencies, to serve as the fiscal agent for the
California Collaborative for Educational Excellence. The
Superintendent shall apportion funds appropriated for the California
Collaborative for Educational Excellence to the fiscal agent.

(d) The California Collaborative for Educational Excellence
shall be governed by a board consisting of the following five
members:

(1) The Superintendent or his or her designee.

(2) The president of the state board or his or her designee.

(3) A county superintendent of schools appointed by the Senate
Committee on Rules.

(4) A teacher appointed by the Speaker of the Assembly.

(5) A superintendent of a school district appointed by the
Governor.

(e) At the direction of the governing board of the California
Collaborative for Educational Excellence, the fiscal agent shall
contract with individuals, local educational agencies, or
organizations with the expertise, experience, and a record of
success to carry out the purposes of this article. The areas of
expertise, experience, and record of success shall include, but are
not limited to, all of the following:

(1) State priorities as described in subdivision (d) of Section
52060.

(2) Improving the quality of teaching.

(3) Improving the quality of school district and schoolsite
leadership.

(4) Successfully addressing the needs of special pupil
populations, including, but not limited to, English learners, pupils
eligible to receive a free or reduced-price meal, pupils in foster
care, and individuals with exceptional needs.

(f) The Superintendent may direct the California Collaborative
for Educational Excellence to advise and assist a school district,
county superintendent of schools, or charter school in any of the
following circumstances:

(1) If the governing board of a school district, county board of
education, or governing body of a charter school requests the advice
and assistance of the California Collaborative for Educational
Excellence.

(2) If the county superintendent of schools of the county in
which the school district or charter school is located determines,
following the provision of technical assistance pursuant to Section
52071 or 47607.3, as applicable, that the advice and assistance of
the California Collaborative for Educational Excellence is
necessary to help the school district or charter school accomplish
the goals described in the local control and accountability plan
adopted pursuant to this article.

(3) If the Superintendent determines that the advice and
assistance of the California Collaborative for Educational
Excellence is necessary to help the school district, county
superintendent of schools, or charter school accomplish the goals
set forth in the local control and accountability plan adopted
pursuant to this article.

(4) If a state-appointed trustee or administrator of a school
district requests the advice and assistance of the California
Collaborative for Educational Excellence.

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