BILL NUMBER: AB 2087	CHAPTERED
	BILL TEXT

	CHAPTER  466
	FILED WITH SECRETARY OF STATE  SEPTEMBER 19, 2014
	APPROVED BY GOVERNOR  SEPTEMBER 19, 2014
	PASSED THE SENATE  AUGUST 18, 2014
	PASSED THE ASSEMBLY  AUGUST 19, 2014
	AMENDED IN SENATE  JUNE 18, 2014
	AMENDED IN ASSEMBLY  APRIL 24, 2014

INTRODUCED BY   Assembly Member Ammiano

                        FEBRUARY 20, 2014

   An act to amend Section 84040 of the Education Code, relating to
community colleges.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2087, Ammiano. Community colleges: Board of Governors of the
California Community Colleges.
   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 this state. Existing law requires the board of governors
to adopt criteria and standards for periodic assessment of the
fiscal condition of community college districts. Existing law
requires the board of governors to develop, by regulation,
appropriate procedures and actions for districts that fail to achieve
fiscal stability or that fail to comply with the board of governors'
recommendations. Existing law authorizes these procedures and
remedies to include the appointment of a special trustee to manage
the community college district.
    This bill would require that the regulations pursuant to which
the board may appoint a special trustee to manage a community college
district provide specific benchmarks to indicate the presence of
local capacity to resume management of the community college district
and clear standards that require meaningful consultation by a
special trustee, or his or her designee, with the community college
district prior to decisionmaking.


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

  SECTION 1.  Section 84040 of the Education Code is amended to read:

   84040.  (a) It is the intent of the Legislature to encourage sound
fiscal management practices among community college districts for
the most efficient and effective use of public funds for the
education of community college students by strengthening fiscal
accountability at the district and state levels.
   (b) The governing board of each community college district shall
provide for an annual audit of all funds, books, and accounts of the
district in accordance with regulations of the board of governors.
The audit shall be made by certified public accountants licensed by
the California Board of Accountancy. In the event the governing board
of a community college district fails to provide for an audit, the
board of governors shall provide for an audit, and if the board of
governors fails or is unable to make satisfactory arrangements for
such an audit, the Department of Finance shall make arrangements for
the audit. The cost of any audit described above shall be paid from
district funds.
   (c) The board of governors shall adopt criteria and standards for
periodic assessment of the fiscal condition of community college
districts, and such regulations regarding the review and improvement
of district fiscal conditions as necessary to encourage sound fiscal
management practices. In so doing:
   (1) The governing board of a community college district, as
required by regulations of the board of governors, shall periodically
report information to the board of governors regarding the fiscal
condition of the district.
   (2) The board of governors, by regulation, shall develop standards
for district maintenance of sound fiscal conditions. The regulations
shall authorize a board comprehensive management review of any
community college district which, after assessing itself or being
assessed in accordance with board criteria and standards, is shown to
be experiencing fiscal difficulty. On the basis of the findings of
the management review, the board of governors may recommend
appropriate changes in a district's management practices.
   (3) The board of governors, by regulation, shall develop
appropriate procedures and actions for districts that fail to achieve
fiscal stability or that fail to comply with the board of governors'
recommendations. The procedures and remedies may include the
appointment of a special trustee to manage the community college
district. The regulations pursuant to which the board of governors
may appoint a special trustee to manage the community college
district shall include specific benchmarks to indicate the presence
of local capacity to resume management of the community college
district and clear standards that require meaningful consultation by
a special trustee, or his or her designee, with the community college
district prior to decisionmaking. The board of governors shall be
authorized to reduce or withhold apportionment to districts to pay
for the cost of the special trustee, management review, or other
extraordinary costs resulting from the district's fiscal difficulties
and to ensure the stabilization of the district's financial
condition.
   (4) The board of governors shall report to the chairs of the
educational policy and fiscal committees of both houses of the
Legislature, the Director of Finance, and the Governor any corrective
action taken by the district and any action taken against the
district pursuant to paragraph (3).