School districts: emergency apportionments: trustees.

Existing law authorizes the governing board of a school district to request an emergency apportionment through the Superintendent of Public Instruction if the governing board of the school district determines during a fiscal year that its revenues are less than the amount necessary to meet its current year expenditure obligations. Under existing law, if a school district accepts an emergency apportionment, the Superintendent is required, among other things, to appoint a trustee who has recognized expertise in management and finance, and may employ, on a short-term basis, any staff necessary to assist the trustee. Existing law also requires the trustee and any necessary staff to serve until the emergency apportionment is repaid, the school district has adequate fiscal systems and controls in place, and the Superintendent determines that the school district's future compliance with an approved fiscal plan is probable. Existing law authorizes the trustee, during the period of his or her service, to stay or rescind any action of the governing board of the school district that, in the judgment of the trustee, may affect the financial condition of the school district. This bill would instead require the trustee and necessary staff to serve until the school district has adequate fiscal systems and controls in place, the Superintendent determines that the school district's future compliance with an approved fiscal plan is probable, and the Superintendent decides to terminate the trustee's appointment, but in no event, for less than 3 years. The bill would authorize the county superintendent of schools who has jurisdiction over the school district, after the trustee's period of service and until the loan is repaid, to stay or rescind an action of the governing board of the school district that, in his or her judgment, may affect the financial condition of the school district. The bill would require the county superintendent of schools to notify the Superintendent, as specified, within 5 business days of staying or rescinding an action of the governing board of the school district. If the Superintendent receives this notice from the county superintendent of schools, the bill would require the Superintendent to report to the Legislature, on or before December 30 of every year, whether the school district is complying with the fiscal plan approved for the school district. Existing law authorizes the Superintendent, within 5 years after an appointed trustee is removed, to reassume, either directly or through an administrator, all of the legal rights, duties, and powers of the governing board of the school district if the school district violates any provision of specified recovery plans approved by the Superintendent. This bill would instead authorize the Superintendent, within 5 years after an appointed trustee is removed or the emergency apportionment is repaid, whichever occurs later, to reassume, either directly or through an administrator, all of the legal rights, duties, and powers of the governing board of the school district if the school district violates any provision of specified recovery plans approved by the Superintendent. The bill also would authorize the governing board of a qualifying school district, after one complete fiscal year has elapsed following the qualifying school district's acceptance of an emergency apportionment, to conduct an annual advisory evaluation, as specified, of the administrator appointed by the Superintendent. The bill would require the evaluation criteria to be agreed upon by the governing board of the qualifying school district and the administrator. The bill would require the advisory evaluation of the administrator to be submitted to the Governor, the Legislature, the Superintendent, and the County Office Fiscal Crisis and Management Assistance Team. The bill would make numerous nonsubstantive changes. The bill would incorporate additional changes in Section 41326 of the Education Code, proposed by AB 2662, to be operative only if AB 2662 and this bill are both chaptered and become effective January 1, 2013, and this bill is chaptered last.