Bill Text: CA AB2357 | 2023-2024 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: University of California: school of medicine: University of California Kern County Medical Education Endowment Fund.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2024-09-29 - Chaptered by Secretary of State - Chapter 959, Statutes of 2024. [AB2357 Detail]

Download: California-2023-AB2357-Introduced.html

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CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill

No. 2357

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Introduced by Assembly Member Bains

February 12, 2024

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An act to add Article 6.6 (commencing with Section 92168) to Chapter 2 of Part 57 of Division 9 of Title 3 of the Education Code, relating to the University of California.

LEGISLATIVE COUNSEL'S DIGEST

AB 2357, as introduced, Bains. University of California: school of medicine: University of California San Joaquin Valley Regional Campus Medical Education Endowment Fund.

The California Constitution provides that the University of California constitutes a public trust administered by the Regents of the University of California, a corporation in the form of a board, with full powers of organization and government, subject to legislative control only for specified purposes.

Existing law creates the University of California, San Francisco, San Joaquin Valley Regional Campus Medical Education Endowment Fund. Upon appropriation by the Legislature, existing law requires moneys in the endowment fund to be allocated to the University of California to support the annual operating costs for the development, operation, and maintenance of a branch campus of the University of California, San Francisco, School of Medicine in the San Joaquin Valley. Existing law also requires, upon appropriation by the Legislature and a determination by the Controller of sufficient funds in the endowment fund, moneys in the fund to be used to cover the University of California’s estimated costs of applying for and obtaining approval and accreditation from the Liaison Committee on Medical Education, as provided. Existing law requires moneys in the endowment fund to initially be invested with the goal of achieving capital appreciation to create a balance of $500,000,000 to generate ongoing earnings to cover the estimated annual operating costs associated with the development, operation, and maintenance of the branch campus, and, upon the determination of the Controller that the endowment fund balance is $500,000,000, requires moneys in the endowment fund to be invested to generate earnings to fund annual operating costs associated with the development, operation, and maintenance of the branch campus.

This bill would create the University of California San Joaquin Valley Regional Campus Medical Education Endowment Fund. Upon appropriation by the Legislature, the bill would require moneys in the endowment fund to be allocated to the University of California to support the annual operating costs for the development, operation, and maintenance of a branch campus of an existing University of California School of Medicine in the County of Kern. The bill would similarly require moneys in the endowment fund to initially be invested with the goal of achieving capital appreciation to create a balance sufficient to generate ongoing earnings to cover the estimated annual operating costs of a branch campus, as provided, and, upon the determination by the Controller that a sufficient balance is achieved and maintained in the endowment fund, would subsequently require moneys in the endowment fund to be invested to generate earnings to fund annual operating costs associated with the development, operation, and maintenance of a branch campus, as provided. The bill would similarly require moneys in the endowment fund to be used, upon appropriation by the Legislature and a determination by the Controller of sufficient funds in the endowment fund, to cover the University of California’s estimated costs of applying for and obtaining approval and accreditation from the Liaison Committee on Medical Education, as provided.

Digest Key

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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Bill Text

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

SECTION 1.

 Article 6.6 (commencing with Section 92168) is added to Chapter 2 of Part 57 of Division 9 of Title 3 of the Education Code, to read:

Article  6.6. The University of California San Joaquin Valley Regional Campus Medical Education Endowment Fund

92168.

 (a) The University of California San Joaquin Valley Regional Campus Medical Education Endowment Fund is hereby established in the State Treasury. Funds received by the University of California or the Controller, for the purposes set forth in subdivision (b), shall be deposited into the University of California San Joaquin Valley Regional Campus Medical Education Endowment Fund. For purposes of this article, “endowment fund” means the University of California San Joaquin Valley Regional Campus Medical Education Endowment Fund.

(b) Moneys in the endowment fund shall be allocated to the University of California, upon appropriation by the Legislature, to support the annual operating costs for the development, operation, and maintenance of a branch campus of an existing University of California School of Medicine in the County of Kern, and to generate funding through investment earnings for the support of medical education in the San Joaquin Valley.

(c) (1) Moneys in the endowment fund shall initially be invested with the goal of achieving capital appreciation to create a balance sufficient to generate ongoing earnings to cover the estimated annual operating costs associated with the development, operation, and maintenance of a branch campus of an existing University of California School of Medicine in the County of Kern.

(2) Upon the determination of the Controller, in consultation with the University of California, that the endowment fund balance has attained the goal established in paragraph (1), moneys in the endowment fund shall be invested to generate earnings to fund annual operating costs associated with the development, operation, and maintenance of a branch campus of an existing University of California School of Medicine in the County of Kern. Moneys shall be invested in a manner that best meets the goals of the endowment fund.

(d) The endowment fund may receive donations and contributions from public and private entities, partnerships between public and private entities, fees, cash advances, and transfers from the General Fund as may be specified by law.

(e) Earnings generated by the endowment fund shall be retained by the endowment fund.

(f) Moneys deposited in the endowment fund are exempt from the requirements of Article 2 (commencing with Section 11270) of Chapter 3 of Part 1 of Division 3 of Title 2 of the Government Code.

92169.

 (a) (1) Upon the determination of the Controller, in consultation with the University of California, that the endowment fund has adequate principal to annually yield sufficient investment earnings, from the date of determination, to cover the annual costs for the development, operation, and maintenance of a branch campus of an existing University of California School of Medicine in the County of Kern, the University of California shall seek approval and accreditation from the Liaison Committee on Medical Education for a branch campus of an existing University of California School of Medicine in the County of Kern.

(2) The Controller, upon appropriation by the Legislature, shall transfer moneys from the endowment fund to the University of California, in an amount equal to the estimated costs of applying for and obtaining approval and accreditation from the Liaison Committee on Medical Education for a branch campus of an existing University of California School of Medicine in the County of Kern.

(b) Any funds, public or private, received for or generated by the endowment fund shall supplement, not supplant, any current or future funding. Any funds allocated from the endowment fund shall supplement, not supplant, the University of California budget allocations for any fiscal year.