BILL NUMBER: SB 1059	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Liu

                        FEBRUARY 16, 2010

   An act to add Section 85225 to the Education Code, relating to
community colleges.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1059, as introduced, Liu. Community college districts:
transfers between district funds.
   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 the state. Existing law establishes community college
districts, administered by a governing board, throughout the state,
and authorizes these districts to provide instruction to students at
the community college campuses maintained by the districts. Existing
law prescribes various fiscal management requirements for community
college districts and authorizes temporary transfers to a community
college district from a county school service fund, or from any funds
of a county, under certain circumstances.
   This bill would authorize the governing board of a community
college district to temporarily transfer moneys in a fund or account
of the district to another fund or account of the district for
payment of obligations. The bill would require the governing board to
repay the amount of the moneys temporarily transferred in the same
fiscal year, or in the following fiscal year if the transfer occurs
within the final 120 calendar days of the fiscal year. The bill would
limit the amount transferred for these purposes to not more than 75%
of the maximum amount held in the fund or account during the fiscal
year.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 85225 is added to the Education Code, to read:
   85225.  (a) The governing board of a community college district
may temporarily transfer moneys held in any fund or account of the
district to another fund or account of the district for payment of
obligations. The governing board shall account for the transfer as
temporary borrowing between funds or accounts. The transferred moneys
shall not be available for appropriation or be considered income to
the borrowing fund or account.
   (b) The governing board shall repay amounts transferred pursuant
to this section either in the same fiscal year, or in the following
fiscal year if the transfer takes place within the final 120 calendar
days of a fiscal year.
   (c) The governing board may transfer moneys pursuant to this
section only if the fund or account receiving the money will earn
sufficient income, during the current fiscal year, to repay the
amount transferred.
   (d) The governing board may transfer not more than 75 percent of
the maximum amount of moneys held in a fund or account during the
current fiscal year pursuant to this section.