BILL ANALYSIS �
AB 2279
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CONCURRENCE IN SENATE AMENDMENTS
AB 2279 (Swanson)
As Amended August 20, 2012
Majority vote
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|ASSEMBLY: |77-0 |(May 29, 2012) |SENATE: |24-12|(August 23, |
| | | | | |2012) |
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Original Committee Reference: ED.
SUMMARY : Removes the requirement that a trustee appointed by
the Superintendent of Public Instruction (SPI) who works in a
school district that received an emergency loan serve until the
loan is repaid. Specifically, this bill :
1)Requires the trustee to serve for at least three years and
until: a) the school district has adequate fiscal
systems/controls in place; b) the SPI determines the
district's future compliance with the fiscal plan is probable;
and, c) the SPI decides to terminate the trustee's
appointment, as specified.
2)Authorizes the county superintendent of schools (CSS) who has
jurisdiction over the district to stay or rescind an action of
the governing board of the school district that may affect the
financial condition of the district after the trustee's period
of service and until the emergency loan is repaid.
3)Requires that, if the CSS exercises his or her stay and
rescind authority, then he or she shall notify the SPI within
five business days with a description of the governing board's
intended action and the reasons for the decision to stay or
rescind the action.
4)Requires that, if the SPI is notified by a CSS regarding a
decision to stay or rescind an action of the governing board,
the SPI shall report to the Legislature on or before December
30 every year whether the district is complying with the
fiscal plan approved for the district.
The Senate amendments :
1)Clarify that the SPI shall decide to terminate the trustee's
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appointment in order for termination to occur.
2)Clarify that the authority to stay and rescind actions of the
district's governing board resides with the CSS that has
jurisdiction over the school district.
3)Add the requirements for the CSS and SPI to provide specified
reports if the CSS exercises his or her authority to stay or
rescind an action of the district governing board.
4)Add double-jointing language to avoid chaptering out issues
with AB 2662 (Committee on Education).
EXISTING LAW requires a trustee to be in place until the
emergency loan is fully repaid-usually about 20 years.
FISCAL EFFECT : According to the Senate Appropriations
Committee, pursuant to Senate Rule 28.8, negligible state costs.
COMMENTS : Existing law provides for emergency loans to school
districts that are unable to meet their current operating
expenses. Such loans are provided by legislation enacted at the
request of the district. Existing law requires districts that
request and agree to receive an emergency loan to agree to
statutory terms and conditions regarding repayment of the loan
and the steps to be taken to return the district to financial
solvency.
If a district receives an emergency loan of up to 200% of its
recommended budget reserve, then the Superintendent of Public
Instruction (SPI) is required to appoint a trustee to monitor
and review the operation of the district and who has the
authority to stay and rescind any action of the district
governing board. Existing law requires the trustee to serve
until the loan is repaid, the district has adequate fiscal
systems and controls in place, and the SPI determines that the
district's future compliance with its approved fiscal plan is
probable. In addition, existing law provides that-before the
district repays the loan-it shall select an auditor from a list
established by the SPI and State Controller to conduct an audit
of its fiscal systems. If the fiscal systems are deemed to be
inadequate, then the SPI may retain the trustee until the
deficiencies are corrected.
Reason for the bill . This bill allows for the removal of the
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trustee after three years, provided specified conditions are
met. Under existing law, the trustee serves until the emergency
loan is repaid-usually about 20 years. Having a trustee in
place for this length of time undermines the community's
engagement with its schools, because the powers and authority of
the locally-elected governing board is constrained. Over time,
this can discourage qualified members of the community from
choosing to serve on the board, leading to further
disengagement, and making self-government more difficult when
full authority returns to the board. A goal of this bill,
therefore, is to be able to remove the trustee and return full
authority to the local governing board sooner than 20 years.
Analysis Prepared by : Rick Pratt / ED. / (916) 319-2087
FN: 0005289