Community colleges: audits: reports.

Removed the word 'department' before 'chancellor's office' in Section 84040.6(a)(3), clarifying that the reporting entity is simply the chancellor's office rather than a 'department chancellor's office.'

Removed redundant phrasing in the legislative counsel's digest where it read 'the office of the Chancellor of the California Community Colleges chancellor's office' and replaced it with just 'the chancellor's office.'

Removed amendment history headers (dates of prior amendments) and the 'as amended' designation from the digest title, consistent with standard enrollment formatting.

The entity required to submit reports on corrective actions taken by or against community college districts (Section 84040(c)(4)) is changed from the 'board of governors' to the 'office of the Chancellor of the California Community Colleges.'

The entity required to submit the annual report on audit exceptions, failed filings, and corrective actions (Section 84040.6(a)) is changed from the 'board of governors' to the 'office of the Chancellor of the California Community Colleges.'

Section 84040.6(b) is clarified to state that the chancellor's office shall include information reported pursuant to paragraph (4) of subdivision (c) of Section 84040 with the annual report, replacing the prior ambiguous language about reporting 'information described in subdivision (a).'

Section 84040.6(a)(3) changes the description of reported actions from 'actions taken by the department' to 'actions taken by the department chancellor's office,' clarifying which entity's actions are being tracked.

Assembly Member Patel is added as a coauthor of the bill.

Section 66017.5 was entirely deleted. This section would have allowed the Chancellor's offices of both California Community Colleges and California State University to stop submitting any reports they deemed obsolete, unnecessary, or outdated, including reports under specific Education Code sections (10803, 81254, 84040, 84040.5, 84040.6, 84044, 84754.5 for community colleges; 10803, 66057, 66742, 89295 for CSU).

Throughout Sections 84040 and 84040.6, the entity responsible for submitting reports changed from 'the board of governors' to 'the office of the Chancellor of the California Community Colleges.' This shifts accountability for audit exception reporting and corrective action reporting from the governing board to the chancellor's administrative office.

In Section 84040(c)(4)(A), the requirement changed from a mandatory 'shall report' to 'shall report, as needed,' making corrective action reporting discretionary in timing rather than on a fixed schedule. In subsection (B), the 2027-28 fiscal year consolidation requirement now only applies 'if the chancellor's office has information to report,' making it conditional rather than automatic.

Minor language changes throughout: 'shall be authorized to' changed to 'may' for apportionment reductions; 'his or her' changed to 'the special trustee's'; 'prior to' changed to 'before'; 'which' changed to 'that' in several places. Senator Rubio was added as coauthor.

The bill now amends Education Code Sections 84040 and 84040.6 (community college district fiscal management and audits), not just adding Section 66017.5 to eliminate obsolete reports.

The Board of Governors must now report corrective actions taken by or against community college districts with fiscal difficulties to the Joint Legislative Audit Committee, in addition to the existing recipients (educational policy and fiscal committees, Director of Finance, Governor).

The annual audit exception report under Section 84040.6 must now be submitted to the Joint Legislative Audit Committee, Director of Finance, and Governor, expanding beyond just the educational policy and fiscal committee chairs.

Reports submitted to legislative committees under both amended sections must comply with Government Code Section 9795 (legislative report requirements).

Beginning in the 2027-28 fiscal year, the fiscal corrective action report (Section 84040) and the audit exception report (Section 84040.6) must be submitted together as a combined filing.

Minor language cleanups in Section 84040: 'board comprehensive management review' added, 'shall be authorized to may reduce' corrected to 'may reduce or withhold,' and redundant phrasing like 'prior to before decisionmaking' fixed.