Amended in Senate May 1, 2014

Amended in Senate April 10, 2014

Amended in Senate March 13, 2014

Senate Bill No. 965

Introduced by Senator Leno

February 10, 2014

An act to add Section 84750.6 to the Education Code, relating to community colleges, and declaring the urgency thereof, to take effect immediately.

LEGISLATIVE COUNSEL’S DIGEST

SB 965, as amended, Leno. Community colleges: funding: San Francisco Community College District.

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Existing

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begin insert (1) end insert begin insert   end insert begin insert Existing end insert law establishes the California Community Colleges under the administration of the Board of Governors of the California Community Colleges. Existing law authorizes the establishment of community college districts under the administration of community college governing boards, and authorizes these districts to provide instruction at community college campuses throughout the state.

Existing law requires the board of governors to develop criteria and standards, in accordance with specified statewide minimum requirements, for the purposes of making the annual budget request for the California Community Colleges to the Governor and the Legislature and allocating state general apportionment revenues. Those statewide minimum requirements include, among other things, a requirement that the calculations of each community college district’s revenue level for each fiscal year be based on specified criteria, with revenue adjustments being made for increases or decreases in full-time equivalent students and for other specified purposes.

This bill, for the 2014-15 fiscal year begin delete to end delete begin insert and end insert the begin delete 2017-18 end delete begin insert 2015-16 end insert fiscal year begin delete , inclusive, end delete would require the board of governors to provide the San Francisco Community College District with revenues, as specified, if, on the effective date of this bill, the begin insert board of governors finds that the end insert community college district or a campus of the community college district begin delete was end delete begin insert is end insert in imminent jeopardy of losing its begin delete accreditation and end delete begin insert accreditation, end insert the board of governors has exercised its authority pursuant to specified provisions begin insert , and the institution is in compliance with a regulation requiring it to be accredited by a specified agency end insert . begin insert The bill would require the board of governors to additionally provide the San Francisco Community College District with revenues for the 2016-17 fiscal year under the same conditions applicable to the 2014-15 and 2015-16 fiscal years, but only if the Fiscal Crisis Management Assistance Team makes a finding no sooner than April 1, 2016, that the San Francisco Community College District is meeting or exceeding specified fiscal benchmarks. end insert

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The bill would require the Chancellor of the City College of San Francisco to submit a report containing specified information to the appropriate policy and fiscal committees of the Legislature, the Office of the Governor, the Legislative Analyst’s Office, and the Department of Finance on or before April 15, 2015, and to submit updates to this report as specified. Because this provision would impose new duties on the San Francisco Community College District, it would constitute a state-mandated local program.

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This bill would make legislative findings and declarations as to the necessity of a special statute for the San Francisco Community College District.

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(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.

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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.

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This

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begin insert (3) end insert begin insert   end insert begin insert This end insert bill would declare that it is to take effect immediately as an urgency statute.

Vote: ²⁄₃. Appropriation: no. Fiscal committee: yes. State-mandated local program:  begin delete no end delete begin insert yes end insert .

The people of the State of California do enact as follows:

SECTION 1.  

Section 84750.6 is added to the Education Code,
to read:

84750.6.  

(a) Notwithstanding Section 84750.5, the board of
governors shall provide the San Francisco Community College
District with revenues, as specified in subdivision (b), if, on the
effective date of begin insert the act that adds end insert this section, both of the following
conditions are satisfied:

(1) The begin insert board of governors finds that the end insert community college
district or a campus of the community college district begin delete was end delete begin insert is end insert in
imminent jeopardy of losing its accreditation.

(2) The board of governors has exercised its authority pursuant
to Section 84040 of this code and Section 58312 of Title 5 of the
California Code of Regulations begin insert as that regulation read on April
15, 2014 end insert .

(b) If the number of full-time equivalent students (FTES) of the
community college district decreases from the number in the
2013-14 fiscal year, the board of governors shall provide revenues
to the community college district, as follows:

(1) For the 2014-15 fiscal year, an amount not less than the
total amount that was received by the community college district
for the attendance of FTES in the 2013-14 fiscal year.

(2) For the 2015-16 fiscal year, an amount not less than 95
percent of the total amount that was received by the community
college district for the attendance of FTES in the 2013-14 fiscal
year.

(3)  begin insert (A) end insert begin insert   end insert For the 2016-17 fiscal year, an amount not less than 90
percent of the total amount that was received by the community
college district for the attendance of FTES in the 2013-14 fiscal
year.

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(4) For the 2017-18 fiscal year, an amount not less than 85
percent of the total amount that was received by the community
college district for the attendance of FTES in the 2013-14 fiscal
year.

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(B) Funds shall be provided under this paragraph only if the
Fiscal Crisis Management Assistance Team makes a finding no
sooner than April 1, 2016, that the San Francisco Community
College District is meeting or exceeding all of the following
benchmarks:

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(i) Effective fiscal controls and systems are in place.

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(ii) The City College of San Francisco has, and is adhering to,
prudent fiscal policies and practices, as corroborated by an
analysis of multiyear projections of no less than three fiscal years
commencing with the 2016-17 fiscal year.

end insert begin insert

(iii) The City College of San Francisco is applying resources
in accordance with a budget plan approved by the special trustee.

end insert begin insert

(iv) The City College of San Francisco is maintaining
appropriate fiscal reserves.

end insert begin insert

(v) The City College of San Francisco has, and is adhering to,
a viable plan to address long-term liabilities including, but not
necessarily limited to, “other postemployment benefits,” as that
term is used in accordance with generally accepted accounting
principles defined by the Governmental Accounting Standards
Board as of April 15, 2014.

end insert

(c) The amounts calculated in paragraphs (1) to begin delete (4) end delete begin insert (3) end insert , inclusive,
of subdivision (b) shall be adjusted by the chancellor to reflect
cost-of-living adjustments, deficits in apportionments, or both, as
appropriate for the applicable fiscal years.

(d) Subdivision (b) shall only be used to determine the
apportionment funding to be allocated to the San Francisco
Community College District. In computing statewide entitlements
to funding based upon the attendance of FTES, the San Francisco
Community College District shall not be credited with more FTES
than were actually enrolled and in attendance.

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(e) Subdivision (b) shall only be operative for a fiscal year in
which the San Francisco Community College District is in
compliance with Section 51016 of Title 5 of the California Code
of Regulations as that regulation read on April 15, 2014.

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(e)

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begin insert (f) end insert  It is the intent of the Legislature that any amounts necessary
to make the apportionments required pursuant to subdivision (b)
be drawn from the state general apportionment revenues for
community college districts.

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begin insert SEC. 2. end insert   

end insert begin insert

(a) The Chancellor of the City College of San
Francisco shall submit all of the following to the appropriate
policy and fiscal committees of the Legislature, the Office of the
Governor, the Legislative Analyst’s Office, and the Department
of Finance on or before April 15, 2015:

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(1) An overview of the college’s current accreditation status,
including a description of any identified accreditation deficiencies
and activities underway to address those deficiencies.

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(2) Enrollment totals for the current and prior years.

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(3) Updated enrollment projections for the two subsequent fiscal
years.

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(4) The number of course sections offered in the current and
prior fiscal years.

end insert begin insert

(5) A thorough explanation of the district’s level of budgetary
reserves and sources of revenue.

end insert begin insert

(6) A thorough multiyear budget plan that explains, at a
minimum, both revenue sources and areas of expenditure.

end insert begin insert

(b) The Chancellor of the City College of San Francisco shall
submit updates to the report submitted under subdivision (a) on
or before the following dates:

end insert begin insert

(1) October 15, 2015.

end insert begin insert

(2) April 15, 2016.

end insert begin insert

(3) October 15, 2016, but only if funding is provided pursuant
to paragraph (3) of subdivision (b) of Section 84750.6 of the
Education Code.

end insert begin insert

(4) April 15, 2017, but only if funding is provided pursuant to
paragraph (3) of subdivision (b) of Section 84750.6 of the
Education Code.

end insert

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begin insert SEC. 3. end insert   

end insert begin insert

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.

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begin delete SEC. 2. end delete
begin insert SEC. 4. end insert   

The Legislature finds and declares that a special law
is necessary and that a general law cannot be made applicable
within the meaning of Section 16 of Article IV of the California
Constitution because of the unique accreditation and fiscal
challenges facing the San Francisco Community College District.

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begin insert SEC. 5. end insert   

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:

The accreditation and fiscal problems facing the San Francisco
Community College District threaten its ability to preserve the
health and safety of its students and require an immediate response.