BILL NUMBER: SB 132 CHAPTERED 07/12/99 CHAPTER 82 FILED WITH SECRETARY OF STATE JULY 12, 1999 APPROVED BY GOVERNOR JULY 12, 1999 PASSED THE SENATE JULY 8, 1999 PASSED THE ASSEMBLY JULY 6, 1999 AMENDED IN ASSEMBLY JUNE 22, 1999 AMENDED IN ASSEMBLY JUNE 8, 1999 AMENDED IN SENATE APRIL 15, 1999 INTRODUCED BY Senator Brulte DECEMBER 23, 1998 An act to amend Section 74265 of, and to add Section 74265.5 to, the Education Code, relating to community college districts, and declaring the urgency thereof, to take effect immediately. LEGISLATIVE COUNSEL'S DIGEST SB 132, Brulte. Community college districts. (1) Existing law provides that a proposal to form a new community college district from that portion of an existing community college district that has not less than 6,500 and not more than 7,000 full-time equivalent students and that contains an existing community college campus, which is located in a county other than the county in which the headquarters of the existing community college district is located, which is 50 or more miles from any other campus in the existing community college district, and which has not less than 1,200 and not more than 1,500 full-time equivalent students in the 1997-98 fiscal year, shall become final upon the approval of the board of governors, without the approval of the voters at an election, in accordance with a prescribed procedure. This bill would authorize a community college district formed under these provisions to contract with another district for the performance of services. The bill would specify procedures for the disposition of funds authorized for, appropriated to, or apportioned to, a community college district formed under these provisions. The bill would impose a state-mandated local program by requiring the existing community college district and a new community college district established under these provisions to enter into an agreement providing for specified matters relating to the formation of a new community college district. (2) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement, including the creation of a State Mandates Claims Fund to pay the costs of mandates that do not exceed $1,000,000 statewide and other procedures for claims whose statewide costs exceed $1,000,000. This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions. (3) This bill would declare that it is to take effect immediately as an urgency statute. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. The Legislature hereby finds and declares that, as the portion of the Desert Community College District containing the Copper Mountain Center is in a different county from, and is located 50 miles or more from, any other campus in the district and had, during the 1997-98 fiscal year, a full-time equivalent enrollment of not less than 1,200 and not more than 1,500 students, that portion should be formed into a new community college district pursuant to Section 74265 of the Education Code and that formation should be expedited. SEC. 2. Section 74265 of the Education Code is amended to read: 74265. (a) (1) Notwithstanding any other provision of this part, an action to form a new community college district from a portion of an existing community college district shall be deemed to be approved as provided by law, for purposes of Section 74250, without election, when approval of that action is given by the Board of Governors of the California Community Colleges pursuant to Section 74205, provided that the proposed new district consists of an existing community college center and its service area, and all of the following conditions exist: (A) The existing community college center in the proposed new district is located in a county other than the county in which the headquarters of the existing community college district is located. (B) The community college center in the proposed new district is located 50 or more miles from any other campus or center in the existing community college district. (C) The existing community college district has a total full-time equivalent enrollment in the 1997-98 fiscal year of not less than 6,500 students and not more than 7,000 students, and the existing community college center, which would become the community college campus in the proposed new district, has a full-time equivalent enrollment in the 1997-98 fiscal year of not less than 1,200 students and not more than 1,500 students. (2) The Board of Governors of the California Community Colleges shall take action as provided in this subdivision at the first regularly scheduled meeting or special meeting after the operative date of the act that adds Section 74265.5. A new community college district formed pursuant to this section shall be formed as soon as practicable on or after July 1 of the calendar year in which the act that adds Section 74265.5 becomes operative. (b) The action to form a new community college district, as described in subdivision (a), shall be submitted for voter approval at an election that shall be called by the county superintendent of schools of the county in which the proposed new community college district is located upon the formation of a new community college district pursuant to subdivision (a). The election shall be called in the manner prescribed in Part 4 (commencing with Section 5000), and shall be conducted at the next available regular election scheduled in the territory of the new community college district defined in the approved proposal according to the procedures prescribed by Sections 35757 to 35764, inclusive. In the event that, pursuant to that election, the voters fail to approve that action, the new community college district formed pursuant to subdivision (a) shall be deemed to be thereupon annexed as a center by the community college district from which it was formed. (c) The election of the first governing board of the community college district formed pursuant to subdivision (a) shall be called and conducted together with the election provided for under subdivision (b). (d) Notwithstanding any other provision of law, the requirements set forth in Article 3 (commencing with Section 74150) of Chapter 2 do not apply to the action to form a new community college district described in subdivision (a). It is the intent of the Legislature that the formation of a district pursuant to this section not adversely affect the state funding of community college districts in subsequent fiscal years. (e) Upon the formation of a new community college district pursuant to this section, the county superintendent of schools for the county in which the new district is situated shall appoint an interim governing board for the new district pursuant to application and selection procedures established by the county superintendent. There shall be five at-large appointees, and these appointees shall constitute the governing board of the new community college district until the members of the governing board elected pursuant to subdivision (c) take office or, in the event that the voters fail to approve the action of forming the new community college district, until the new community college district is annexed, pursuant to subdivision (b), by the community college district from which it was formed. (f) After the effective date of the formation of the new community college district pursuant to this section, one district may contract with the other district for the performance of services under terms and conditions that may be agreed upon by the two districts. (g) (1) Notwithstanding any other provision of law, after the effective date of the formation of a new community college district pursuant to this section, the new community college district shall receive all state funding to which a district of its enrollment with fully accredited programs of instruction would be entitled. Funds authorized, appropriated, or apportioned for distribution to the new community college district, regardless of source, and regardless of whether those funds are presently being handled by the county office of education in which the existing district is headquartered, shall be transferred to, directed to, and channeled through, the county office of education for the county in which the new district is located. (2) Notwithstanding any other provision of law, the property tax properly attributable to the territory of the new district shall also be transferred to the county office of education for the county in which the new district is located as of July 1 of the calendar year in which the transfer becomes effective. (h) When procedures implemented pursuant to this section require notice to affected county agencies, and if the territory of the new and old districts is located in more than two counties, then these notices are required to be provided only to the two counties containing the largest parcels of territory comprising the old and new community college districts. SEC. 3. Section 74265.5 is added to the Education Code, to read: 74265.5. (a) Except as otherwise provided in this section, the disposition of records, funds, property, and obligations when a community college district is formed as specified in Section 74265 shall be governed by Article 3 (commencing with Section 74280) and by any applicable regulations adopted by the Board of Governors of the California Community Colleges. (b) The existing community college district and a new community college district established pursuant to Section 74265 shall enter into an agreement providing for matters relating to the formation of a new community college district. Those matters to be included in the agreement include, but are not limited to, all of the following: (1) Assignment of existing academic employees and classified employees. (2) Division and disposition of all interests in property, buildings, fixtures, and leases thereon, including, but not necessarily limited to, any agreement entered into pursuant to Chapter 2 (commencing with Section 81300) of Part 49. (3) Facilities and equipment, including, but not limited to, existing obligations for the acquisition, procurement, or maintenance of electronic systems, materials, goods, and services. (4) Division and transfer of funds and obligations, other than bonded indebtedness, affected by the formation of the proposed new community college district. (5) Transfer of all records required to be maintained by a community college district, including student records maintained in accordance with Chapter 1.5 (commencing with Section 76200) of Part 47. (6) Division and transfer of all existing and potential rights, obligations, and liabilities, whether at law or in equity. (c) The agreement to be entered into pursuant to this section shall expressly provide that the proposed new community college district shall successfully complete accreditation as required by law on or before a date to be specified in the agreement. Nothing in this subdivision shall require the existing community college district to sustain accreditation for the proposed new community college district after the date specified in the agreement for the proposed new community college district to complete accreditation. (d) The agreement to be entered into pursuant to this section shall specify that funds derived from the sale of bonds issued by the existing community college district shall be used for the acquisition, construction, or improvement of college property only in the territory comprising the existing community college district after formation of the proposed new community college district or to discharge the bonded indebtedness of the existing community college district, except that, if the bonded indebtedness is assumed by the proposed new community college district, the funds may be used in any area of the new district for the purposes for which the bonds were originally voted. (e) For purposes of this section, the interim board of governors appointed by the county superintendent of schools shall be deemed authorized at all times to execute the agreement provided for by this section on behalf of the proposed new community college district until the members of the first elected governing board of the new community college district take office in accordance with Section 74265. SEC. 4. Notwithstanding Section 17610 of the Government Code, if the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code. If the statewide cost of the claim for reimbursement does not exceed one million dollars ($1,000,000), reimbursement shall be made from the State Mandates Claims Fund. SEC. 5. This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are: In order to ensure an orderly transition for a new community college district formed pursuant to Section 74265 of the Education Code, and to ensure the continuous provision of services to affected community college students as required by law, it is necessary that this act take effect immediately.