CCLME.ORG - DIVISION 6. CALIFORNIA COMMUNITY COLLEGES
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(a) On or before the first day of July in each year, each district shall adopt a tentative budget and forward an information copy to the appropriate county officer. To the extent that the budget is based on information provided by the county, the budget data should be validated by the appropriate county officer.
(1) The budget shall indicate the date, time, and location at which the governing board of the district will hold the public hearing required pursuant to Section 58301.
(2) If the governing board of the district does not want all or a portion of the property tax requirement levied for the purpose of making payments for the interest and principal on outstanding general obligation bonds or other indebtedness approved by the voters prior to July 1, 1978, the budget shall include a statement of the amount or portion for which a levy shall not be made.
(b) Each district shall provide all data needed by the county to compute the actual amounts to be levied on the property tax rolls of the district for purposes which exceed apportionments to the district pursuant to Sections 95 to100, inclusive, of the Revenue and Taxation Code.
(c) On or before the 15th day of September, the governing board of each district shall adopt a final budget.
(d) On or before the 30th day of September, each district shall complete the preparation of its adopted annual financial and budget report. Once completed, this report and its supporting documentation is considered a public record pursuant to Section 6250 et seq. of the Government Code. On or before the 10th day of October, each district shall submit a copy of its adopted annual financial and budget report to the Chancellor. The district shall also file copies of the report with the appropriate county officers for information and review.

Note: Authority cited: Sections 66700, 70901 and 84750, Education Code. Reference: Section 70901, Education Code.

s 58306. Effect of Neglect or Refusal to Make a Budget.
(a) Except as otherwise provided in subdivision (b), if the governing board of any district neglects or refuses to make a district budget as prescribed by the Office of the Chancellor, or fails to develop a budget by the deadline dates as specified in section 58305, the Chancellor may withhold any apportionment of state or local money to the particular district for the current fiscal year until the district makes a proper budget.
(b) No penalty shall be imposed upon a district pursuant to subdivision (a) if the Chancellor determines that unique circumstances make it impossible for the district to comply with its duties to adopt a budget, or if there are delays in the adoption of the annual Budget Act.

Note: Authority cited: Sections 66700 and 70901, Education Code. Reference: Section 70901, Education Code.

s 58307. District Budget Limitation on Expenditure.
The total amount budgeted as the proposed expenditure of the district for each major classification of district expenditures listed in the district budget forms prescribed by the board shall be the maximum amount which may be expended for that classification of expenditures for the school year. Transfers may be made from the reserve for contingencies to any expenditure classification or between expenditure classifications at any time by written resolution of the board of trustees of a district. A resolution providing for the transfer from the reserve for contingencies to any expenditure classification must be approved by a two-thirds vote of the members of the governing board; a resolution providing for the transfer between expenditure classifications must be approved by a majority of the members of the governing board.

Note: Authority cited: Sections 66700 and 70901, Education Code. Reference: Section 70901, Education Code.

s 58308. Appropriation of Excess Funds and Limitations.
All income accruing to the district in excess of the amounts required to finance the total proposed expenditures, including transfers to other community college districts and funds, as shown in the budget of the district shall be added to the general reserve of the district, and shall not be available for appropriation by the district for the current fiscal year except by the following procedure. The governing board of the district shall, by formal action of the board, pass a resolution setting forth the need according to major classification of district expenditures to be met from any portion of the general reserve derived from assured income in excess of the total amount anticipated in the budget.
On the first day of July of each year, the general reserve together with unexpected balances of appropriations and income in excess of anticipated income for the preceding fiscal year shall be placed to the credit of the district, and the district shall include all money so credited in the balance as shown in the budget for the ensuing fiscal year.

Note: Authority cited: Sections 66700 and 70901, Education Code. Reference: Section 70901, Education Code.

s 58310. Report on District's Financial Condition.
The chief executive officer or other designee of the governing board of each district shall regularly report in detail to the governing board of the district the district's financial condition and shall submit reports showing the financial and budgetary conditions of the district, including outstanding obligations, to the governing board at least once every three months. The chief executive officer or other designee shall also prepare a quarterly report on forms provided by the Chancellor. The district shall submit a copy of the certified report to the appropriate county offices and the Chancellor no later than forty-five days following the completion of each quarter. The certified report shall be reviewed by the district governing board at a regularly scheduled meeting and entered into the minutes of the meeting.
Upon review and analysis of the report, the Chancellor or his/her designee shall determine if follow-up or intervention is needed. Intervention may be necessary if a district's financial data indicate a high probability that, if trends continue unabated, the district will need an emergency apportionment within three years or that the district is not in compliance with the principles of sound fiscal management specified in section 58311. Such follow-up or intervention may include, but shall not be limited to, requiring the submission of additional or more frequent reports, requiring the district to respond to specific concerns, and directing the district to prepare and adopt a detailed plan for achieving fiscal stability and an educational plan demonstrating the impact of the fiscal plan on the district's educational program.
Intervention may also include the assignment of a special trustee having the authority described in section 58312 to any district that requires intervention within the five fiscal years immediately following the ending date of the services of a previously assigned special trustee. The renewed assignment of a special trustee under this paragraph may be made upon a finding by the Chancellor or his/her designee that if trends continue unabated, the district will need an emergency apportionment within three years or that the district is noncompliant with the principles of sound fiscal management specified in section 58311, except that the special trustee may only assume management and control of the district if authorized to do so by the Board of Governors. The costs incurred by the performance of the special trustee shall be paid in the manner described in subdivision (f) of section 58312 from funds which would have otherwise been apportioned to the district.
The Chancellor shall develop and maintain procedures for the administration of the fiscal monitoring program specified in Education Code section 84040 and this section.

Note: Authority cited: Sections 66700, 70901 and 84040, Education Code. Reference: Section 70901, Education Code.

s 58311. Principles for Sound Fiscal Management.
In any organization certain principles, when present and followed, promote an environment for growth, productivity, self-actualization, and progress. The following principles shall serve as the foundation for sound fiscal management in community college districts:
1. Each district shall be responsible for the ongoing fiscal stability of the district through the responsible stewardship of available resources.
2. Each district will adequately safeguard and manage district assets to ensure the ongoing effective operations of the district. Management will maintain adequate cash reserves, implement and maintain effective internal controls, determine sources of revenues prior to making short-term and long-term commitments, and establish a plan for the repair and replacement of equipment and facilities.
3. District personnel practices will be consistent with legal requirements, make the most effective use of available human resources, and ensure that staffing costs do not exceed estimates of available financial resources.
4. Each district will adopt policies to ensure that all auxiliary activities that have a fiscal impact on the district comport with the educational objectives of the institution and comply with sound accounting and budgeting principles, public disclosures, and annual independent audit requirements.
5. Each district's organizational structure will incorporate a clear delineation of fiscal responsibilities and establish staff accountability.
6. Appropriate district administrators will keep the governing board current on the fiscal condition of the district as an integral part of the policy- and decision-making processes.
7. Each district will effectively develop and communicate fiscal policies, objectives, procedures, and constraints to the governing board, staff, and students.
8. Each district will have an adequate management information system that provides timely, accurate, and reliable fiscal information to appropriate staff for planning, decisionmaking, and budgetary control.
9. Each district will adhere to appropriate fiscal policies and procedures and have adequate controls to ensure that established fiscal objectives are met.
10. District management will have a process to evaluate significant changes in the fiscal environment and make necessary, timely, financial and educational adjustments.
11. District financial planning will include both short-term and long-term goals and objectives, and broad-based input, and will be coordinated with district educational planning.
12. Each district's capital outlay budget will be consistent with its five-year plan and reflect regional planning and needs assessments.
To the extent that the foregoing principles repeat or paraphrase mandates already in existence, these underlying mandates shall continue to be legally binding. Otherwise, these principles, by themselves, shall be applied to the extent that existing state and district funding is available.

Note: Authority cited: Sections 66700, 70901 and 84040, Education Code. Reference: Section 70901, Education Code.

s 58312. Inadequate Plans by District or Failure to Implement Plans; Authorized Actions by the Chancellor.
If the Chancellor determines that the district's plans prepared and adopted pursuant to section 58310 are inadequate to solve the financial problems or to implement the principles of sound fiscal management, or if the district substantially fails to implement the plans, the Chancellor shall have the authority to take any of the following actions. The Chancellor should first utilize measures which minimize interference with normal district operation, unless he or she determines that acting otherwise is necessary to prevent the worsening of fiscal conditions at the district.
(a) Conduct a comprehensive management review of the district and its educational programs and an audit of the financial condition of the district. The Chancellor may also contract for, or request another appropriate agency to conduct, the reviews and audit or require the district, at the expense of the district, to contract for the reviews and audit. The terms and conditions of the contract and the final selection of a contractor shall be subject to the written approval of the Chancellor.
(b) Direct the district to amend and readopt the fiscal and educational plans prepared pursuant to section 58310 based on the findings of the comprehensive audits.
(c) Review and monitor the implementation of the plans and direct the district to make any further modifications to the fiscal and educational plans he or she deems necessary for the district's achievement of fiscal stability.
(d) Appoint or assign a special trustee at district expense for the period of time necessary for the district to achieve fiscal stability or solvency or to implement the principles of sound fiscal management. The Chancellor shall establish benchmarks that indicate the presence of local capacity to manage fiscal duties. The special trustee shall have recognized expertise in finance, and may, with the approval of the Chancellor, employ on a short-term basis any staff necessary to assist the special trustee. The Chancellor shall determine and specify in writing the duties of the special trustee, which may include, but are not limited to, any or all of the following:
(1) Reviewing and monitoring the plans, reports, and other financial material required under section 58310 and this section.
(2) Requiring any further modifications to the fiscal and educational plans which he or she deems necessary.
(3) Determining district spending levels and priorities to further the district's achievement of fiscal stability.
(4) Approving or disapproving actions of the district which affect or relate to the implementation of the fiscal and educational plans.
(e) If the Chancellor determines that further efforts to have the district modify or implement the plans would be futile, the Chancellor may, with the approval of the Board of Governors, also authorize a special trustee appointed pursuant to subdivision (d) to assume management and control of the district, including assumption of the legal rights, powers and duties of the governing board of the district to the full extent deemed necessary by the Board of Governors in order to achieve fiscal stability or solvency or to implement the principles of sound fiscal management set forth in section 58311. The Chancellor may authorize the special trustee to exercise such powers as are approved by the Board of Governors for a period of no more than one year, unless the Board of Governors approves one or more one-year extensions. The exercise by the special trustee of such powers shall be subject to all legal requirements applicable to the district. The governing board of the district may not exercise any authority so assumed.
(f) The Chancellor may require the district, at district expense, to pay all costs incurred in performing any of the services described in this section. This may include requiring the district to employ staff or contract for services necessary to assist the special trustee, to compensate the special trustee for his or her services and for any expenses or liabilities that he or she may incur, to insure the special trustee, and to defend, indemnify and hold harmless the special trustee, the Office of the Chancellor or its employees and the state for any liability arising out of or in connection with the conduct of the district or its governing board prior to the appointment of the special trustee. Alternatively, or to the additional extent necessary, the Chancellor may withhold funds necessary to pay for any or all such costs incurred in performing the services described herein from funding that would otherwise have been apportioned to the district under Section B of the State School Fund.

Note: Authority cited: Sections 66700, 70901 and 84040, Education Code. Reference: Section 70901, Education Code.

s 58314. Failure of Procedures to Achieve District Financial Stability; Authorized Actions of Chancellor.
If the procedures pursuant to sections 58310 and 58312 fail to achieve district financial stability, as determined by the Chancellor, the Chancellor shall do any or all of the following:
(a) Reduce or withhold any apportionment to the district in any amount he or she deems appropriate.
(b) Report to the Board of Governors and the chairs of the educational policy and fiscal committees of both houses of the Legislature, the Director of Finance, and the Governor regarding the reasons for the continuing lack of fiscal stability at the district, any actions taken against the district, and the Chancellor's recommendations regarding further steps necessary to restore the district to fiscal stability or solvency or to bring it into compliance with the principles of sound fiscal management.
(c) Seek an emergency apportionment pursuant to section 58316.

Note: Authority cited: Sections 66700, 70901 and 84040, Education Code. Reference: Section 70901, Education Code.

s 58316. Appropriation for Emergency Apportionment; Repayment Schedule.
(a) If the procedures pursuant to Sections 58310, 58312 and 58314 fail to stabilize the financial condition of the district before an emergency apportionment is necessary, the Chancellor may seek an appropriation for an emergency apportionment in an amount necessary to maintain the educational programs of the district as specified in the educational plan pursuant to Sections 58310 and 58312 and to preclude a negative ending balance.
(b) For each of three fiscal years, the Controller shall deduct from apportionments paid to a district pursuant to law, an amount not less than one-third of the amount actually allocated to the district pursuant to this section, together with amounts representing interest at a rate based on the most current investment rate of the Pooled Money Investment Account as of the date of the disbursement of funds to the district.
For each of three fiscal years, the amount deducted by the Controller pursuant to this subdivision shall be reapportioned to the source of the funds allocated to the district pursuant to this section. Amounts so reapportioned to Section B of the State School Fund shall be apportioned by the Chancellor to districts to alleviate any deficits in state funding in the year in which the loan is made or during the period of repayment. Unless otherwise determined pursuant to subdivision (c), the three-year repayment period shall consist of three consecutive fiscal years commencing with the fiscal year following the year in which the emergency apportionment is made.
(c) Any district which has received an emergency apportionment pursuant to this section may request a revision of the repayment schedule. The request shall be submitted to the Chancellor, the Joint Legislative Audit Committee, the Joint Legislative Budget Committee, and the Director of Finance. The request shall be accompanied by appropriate justification for any deferral of repayment, including a revision to the plans adopted by the district's governing board as specified in this section, together with specified identification of the reasons that the actions were taken by the district to correct the financial problems.
The Chancellor shall consult with representatives of the Joint Legislative Audit Committee, the Joint Legislative Budget Committee, the Director of Finance, and representatives which the Chancellor may select from the chief executive officers and presidents of the other community colleges and districts throughout the state. After consulting with these representatives, the Chancellor may revise the repayment schedule, may forgive the interest payments otherwise compounded as a result of any deferral of payment, and may specify any conditions that he or she determines are necessary to assure the repayment of the emergency apportionment. The Chancellor shall report his or her actions to the Board of Governors, the Director of Finance, the Controller, and Joint Legislative Budget Committee. The Controller shall deduct amounts from the apportionment schedule in accordance with the revised repayment plan.

Note: Authority cited: Sections 66700, 70901 and 84040, Education Code. Reference: Section 70901, Education Code.

s 58317. Special Trustee Following Notice of Inadequate Plan.

Note: Authority cited: Sections 66700, 70901 and 84040, Education Code. Reference: Section 70901, Education Code.

s 58318. Requirement for Employee Indemnity Bond.
The governing board of every community college district shall require each employee of the district, whose duty it is to handle funds of the district, and may, in its discretion, require employees of the district, whose duty it is to handle property of the district, to be bonded under a suitable bond indemnifying the district against loss.

Note: Authority cited: Sections 66700 and 70901, Education Code. Reference: Section 70901, Education Code.

s 58500. Definition.
Each district governing board shall charge each student a fee for enrolling in credit courses pursuant to the requirements of Education Code section 76300 and the requirements of this article. The fee prescribed by section 76300 shall be known as the enrollment fee.

Note: Authority cited: Sections 66700, 70901 and 76300, Education Code. Reference: Section 76300, Education Code.

s 58501. Enrollment Fee.
(a) Semester: The enrollment fee charged of students enrolled in a regular semester shall be a per credit unit rate prescribed by the Legislature.
(b) Quarter: The enrollment fee charged of students enrolled in a regular quarter session shall be two-thirds of the per credit unit rate for a regular semester.
(c) Fractional Units: The enrollment fee charged for courses with fractional unit value shall be computed by multiplying the fraction times the applicable semester or quarter unit rate and rounding off to the nearest dollar.

Note: Authority cited: Sections 66700, 70901 and 76300, Education Code. Reference: Section 76300, Education Code.

s 58501.1. Differential Enrollment Fee.

Note: Authority cited: Sections 66700, 70901 and 76300, Education Code. Reference: Sections 32320, 76300, 76330 and 76330.1, Education Code.

s 58502. Fee Charged at Enrollment.
The enrollment fee shall be charged of a student at the time the student is enrolled in a class. The district governing board may establish a policy authorizing the collection of the fee to be deferred under conditions determined by the governing board.

Note: Authority cited: Sections 66700, 70901 and 76300, Education Code. Reference: Section 76300, Education Code.

s 58503. Variable Unit Classes.
A student shall be charged for a variable unit class at the time the student enrolls in the class. The enrollment fee shall be based on the number of units in which the college enrolls the student. If the student later earns additional units, the student may add those units pursuant to the district's policy for adding classes. Any additional enrollment fee shall then be charged of the student. No refund shall be made for units not earned by the student, except as provided in section 58508.

Note: Authority cited: Sections 66700, 70901 and 76300, Education Code. Reference: Section 76300, Education Code.

s 58504. Short-Term Classes.

Note: Authority cited: Sections 66700, 70901 and 72252, Education Code. Reference: Section 72252, Education Code.

s 58505. Courses Extending Beyond One Term.

Note: Authority cited: Sections 66700, 70901 and 72252, Education Code. Reference: Section 72252, Education Code.

s 58506. Summer Session or Intersession.

Note: Authority cited: Sections 66700, 70901 and 72252, Education Code. Reference: Section 72252, Education Code.

s 58507. Program Changes.
A community college district may allow a student to add or drop classes during the term pursuant to district policy. The enrollment fee shall be adjusted to reflect added or dropped courses as allowed by district policy.

Note: Authority cited: Sections 66700, 70901 and 76300, Education Code. Reference: Section 76300, Education Code.

s 58508. Refunds.
(a) A community college district governing board shall refund upon request any enrollment fee paid by a student pursuant to section 58501 for program changes made during the first two weeks of instruction for a primary term-length course, or by the 10 percent point of the length of the course for a short-term course.
(b) A student shall be allowed at least two weeks from the final qualifying date of the program change specified in subdivision (a) to request an enrollment fee refund.
(c) A community college district shall not refund any enrollment fee paid by a student for program changes made after the first two weeks of instruction for a primary term-length course, or after the 10 percent point of the length of the course for a short-term course, unless the program change is a result of action by the district to cancel or reschedule a class or to drop a student pursuant to section 55202(g) where the student fails to meet a prerequisite.
(d) When refunding an enrollment fee pursuant to subdivision (a), a community college district may retain once each semester or quarter an amount not to exceed $10.00.
(e) If the district has adopted a withdrawal policy pursuant to section 55758, any student who is a member of an active or reserve United States military service, and who has withdrawn from courses due to military orders, may file a petition with the district requesting refund of the enrollment fee. The district shall refund the entire fee unless academic credit has been awarded.
(f) Prior to refunding any enrollment fee or tuition, the district may determine if the student received federal Title IV funds during the term of enrollment. If funds were received, the refund may be held for up to 30 days while the district determines if any institutional or student return to the federal Title IV programs is due under Section 485 of the Higher Education Amendments of 1998, P.L. 105-244. If a return is deemed to be required, the amount of enrollment fee refund may first be used to meet any return obligation of the district and, if an amount of enrollment fee refund remains after the district obligation has been met, that amount may be used to meet any return obligation of the student. If an enrollment fee refund amount remains after all return obligations have been met, the student shall receive the remainder.

Note: Authority cited: Sections 66700, 70901 and 76300, Education Code. Reference: Section 76300, Education Code.

s 58509. Authority of Chancellor To Waive Provisions To Accommodate Students Impacted by Wildfires.
(a) Notwithstanding section 58508, a community college district may provide a full refund of enrollment fees to any student who withdrew from one or more classes, where such withdrawal was necessary because the student was engaged in fighting wildfires, was forced to evacuate his or her home due to such fires, or suffered other loss or injury as a result of such fires.
(b) Notwithstanding section 55758, a community college district need not record a "W" on the academic records of a student who withdraws from one or more classes due to any of the circumstances described in subdivision (a).
(c) The Chancellor is authorized, upon receipt of a written request from a community college district, to waive any provision of this title in order to accommodate students affected by any of the circumstances described in subdivision (a).

Note: Authority cited: Sections 66700 and 70901, Education Code. Reference: Section 70901, Education Code.

s 58510. Student Center Fee Election.
If it desires to exercise the authority given by section 76375 of the Education Code, the governing board of a community college district shall establish procedures for an election conducted for the purpose of collecting a student body center building and operating fee, and call an election for such purpose. The procedures shall be developed in consultation with the student government body of the college(s) at which the fee would be assessed. The election shall, at minimum, meet the following criteria:
(a) The governing board shall make available in its district office and the student government office written information regarding the election procedures. Such information shall be made available to the public upon request.
(b) Adequate notice of the election shall be given. Adequate notice is deemed to be at least ten school days prior to the election date.
(c) The election shall be held on a day which counts toward the 175 day requirement set forth in section 58142. In instances where the election is conducted for more than one day, those days shall be consecutive and shall be limited to a maximum of five days.
(d) The ballot proposal seeking authorization of the fee shall specify the intended duration of the fee and the intended use of the fee revenue.
(e) The election shall be conducted in a manner that would allow equal opportunity for day and evening students to participate.

Note: Authority cited: Sections 66700, 70901 and 76375, Education Code. Reference: Section 76375, Education Code.

s 58600. Scope.
This subchapter governs the administration of student financial aid allocated by the Board of Governors to community college districts.

Note: Authority cited: Sections 66700, 70901 and 76300, Education Code. Reference: Section 76300, Education Code.

s 58601. Definitions.
As used in this subchapter:
Board of Governors Grant. An instrument used by a community college district to process the financial assistance provided to a low-income student pursuant to the terms of this subchapter.

Note: Authority cited: Sections 66700, 70901 and 76300, Education Code. Reference: Section 76300, Education Code.

s 58610. Allocations.
(a) The Chancellor shall estimate each community college district's need for Board of Governors Grants, and shall allocate funds to districts based on that anticipated need.
(b) In estimating each district's need for these financial assistance funds the Chancellor shall consider the following factors:
(1) The number of Pell Grant recipients in the district in the previous fiscal year;
(2) The estimated number of students in the district who are eligible pursuant to Education Code section 76300;
(3) The estimated number of low-income students in the district who are enrolled for fewer than six units.
(c) The Chancellor shall apportion the allocations in the advanced apportionment certified by the Chancellor.

Note: Authority cited: Sections 66700, 70901 and 76300, Education Code. Reference: Section 76300, Education Code; 20 U.S.C. Section 1070(a).

s 58611. Adjustments.
Districts shall report the number of and amounts provided for Board of Governors Grants. The Chancellor shall then adjust the financial assistance allocation in the first and second principal apportionments to reflect each district's actual expenditure of funds allocated pursuant to this subchapter. Any necessary additional adjustments shall be made in the applicable fiscal year recalculations.

Note: Authority cited: Sections 66700, 70901 and 76300, Education Code. Reference: Section 76300, Education Code.

s 58612. Financial Assistance Awards.
(a) A community college district shall provide Board of Governors Grants to all students who are eligible and who apply for this assistance.
(b) A student who is determined to be eligible for a Board of Governors Grant may be presumed to be eligible for that assistance for the remainder of the academic year and until the beginning of the following fall term.
(c) Nothing in this subchapter shall prohibit a community college district from establishing a date beyond which it will not accept applications for this financial assistance.

Note: Authority cited: Sections 66700, 70901 and 76300, Education Code. Reference: Section 76300, Education Code.

s 58613. Award Amounts.
Board of Governors Grants shall be made in the amount of the enrollment fee calculated pursuant to section 58507.

Note: Authority cited: Sections 66700, 70901 and 76300, Education Code. Reference: Section 76300, Education Code.

s 58620. Student Eligibility: Board of Governors Grant.
To be eligible for a Board of Governors grant, a student must:
(a) Be a California resident; so long as a person qualifies for a military exception pursuant to Education Code section 68074 or section 68075, he or she shall be deemed a California resident for purposes of this section.
(b) Meet one of the following criteria:
(1) Income Standards.
(A) Be a single and independent student having no other dependents and whose total income in the prior year was equal to or less than 150% of the U.S. Department of Health and Human Services Poverty Guidelines for a family of one; or be a married, independent student having no dependents other than a spouse, whose total income of both student and spouse in the prior year was equal to or less than 150% of the U.S. Department of Health and Human Services Poverty Guidelines for a family of two.
(B) Be a student who is dependent in a family having a total income in the prior year equal to or less than 150% of the U.S. Department of Health and Human Services Poverty Guidelines for a family of that size, not including the student's income, but including the student in the family size.
(C) Provide documentation of taxable or untaxed income.
(D) Be a student who is married or a single head of household in a family having a total income in the prior year equal to or less than 150% of the U.S. Department of Health and Human Services Poverty Guidelines for a family of that size.
(E) Be an independent student whose Estimated Family Contribution as determined by federal methodology is equal to zero or a dependent student for whom the parent portion of the Estimated Family Contribution as determined by federal methodology is equal to or less than zero.
(F) For purposes of this subdivision, U.S. Department of Health and Human Services Poverty Guidelines used each year shall be the most recently published guidelines immediately preceding the academic year for which a fee waiver is requested.
(2) Current recipient of benefits described in Education Code section 76300(g).
(A) At the time of enrollment be a recipient of benefits under the Temporary Assistance for Needy Families (TANF) program. A dependent student whose parent(s) or guardian(s) are recipients of TANF shall be eligible if the TANF program grant includes a grant for the student or if the TANF grant is the sole source of income for the parent or guardian.
(B) At the time of enrollment be a recipient of benefits under the Supplemental Security Income (SSI) program. A dependent student whose parent(s) or guardian(s) are recipients of SSI shall be eligible if the SSI program grant is the sole source of income for the parent(s) or guardian(s).
(C) At the time of enrollment be a recipient of benefits under the General Assistance program.
(D) Provide documentation that the student if a recipient of benefits under one of the programs identified in Education Code section 76300(g) and (h) at the time of enrollment. Documentation sufficient to meet the requirements of this subdivision shall provide official evidence of these benefits.
(3) Need-Based Financial Aid Eligibility. Any student who has been determined financially eligible for federal and/or state needed-based financial aid.

Note: Authority cited: Sections 66700, 68044, 70901 and 76300, Education Code. Reference: Sections 68074, 68075 and 76300(g) and (h), Education Code; 20 USC Section 1070(a); and 34 CFR Section 674.12.

s 58621. Student Eligibility: Enrollment Fee Credit.

Note: Authority cited: Sections 66700, 71020, 71062 and 72252, Education Code. Reference: Section 72252, Education Code; and Section 19, Chapter 1, Statutes of 1984.

s 58622. Student Eligibility: Enrollment Fee Waiver.

Note: Authority cited: Sections 66700, 71020, 71062 and 72252, Education Code. Reference: Section 72252, Education Code; and Section 19, Chapter 1, Statutes of 1984.

s 58630. District Reporting and Accountability.
(a) Dollars allocated for financial assistance pursuant to this subchapter shall be identified separately in district accounts.
(b) The governing board of each community college district shall adopt procedures that will document all financial assistance provided on behalf of students pursuant to this subchapter. Authorized procedures shall include rules for retention of support documentation which will enable an independent determination regarding accuracy of the district's certification of need for financial assistance.

Note: Authority cited: Sections 66700, 70901 and 76300, Education Code. Reference: Section 76300, Education Code.

s 58700. Introduction.
(a) The criteria and standards set forth in this Subchapter shall serve as the basis of making the Board of Governors annual budget request for the California Community Colleges to the Governor and the Legislature and as the basis for Board of Governors allocation of the state general apportionment revenues.
(b) The provisions of Chapter 5, Article 2.5 of Part 50 of the Education Code and the provisions of this Subchapter shall be the sole basis for budget requests and allocations of state general apportionment revenues.
(c) Notwithstanding the foregoing, adjustments for prior year apportionments shall be made using the funding mechanism applied for apportionment purposes in the year for which adjustments are made.

Note: Authority cited: Sections 66700, 70901 and 84750, Education Code. Reference: Section 84750, Education Code.

s 58702. Scope of Subchapter.
This subchapter applies to the allocation of general state apportionment.

Note: Authority cited: Sections 66700, 70901 and 84750, Education Code. Reference: Section 84750, Education Code.

s 58702.5. Waiver.
The Chancellor is authorized to waive or adjust any provision of this Subchapter as necessary to ensure that districts not party to district reorganization authorized by Education Code Sections 74265 and 74265.5 will not be adversely affected during the fiscal year in which any such reorganization occurs.

Note: Authority cited: Sections 66700, 70901 and 84750, Education Code. Reference: Sections 74265, 74265.5 and 84750.


s 58704. Program Based Funding Principles.
(a) General funding for community college districts shall be prior year general apportionment revenue (state and local) adjusted for any amount attributed to a deficit mechanism, with revenue adjustments being made for inflation, increases or decreases in workload measures, program improvement and such other adjustments as are authorized by law.
(b) The funding mechanism for credit instruction shall be based on the categories of operation provided for in section 84750 of the Education Code, articles 2-6 of this subchapter, and such other categories of operation as may, from time to time, be determined by the Legislature.
(c) The funding mechanism for community college noncredit activities shall be as specified in section 84750(b)(3) of the Education Code, and articles 6 and 7 of this subchapter.
(d) Standards determine the level of service and the corresponding funding deemed appropriate for each category. That corresponding funding level shall be referred to as the target allocation. From the target allocation, a simplified standard rate(s) shall be derived that when applied to the applicable workload measure(s) and scale factor will compute approximately the same result. The standards applicable to each category are as set forth in articles 2-7.
(e) Recognition shall be given to small colleges (up to 5,000 credit FTES) and small districts (up to 10,000 credit FTES) for special financial consideration to accommodate the additional cost of being small.
(f) The Board of Governors may, in conjunction with consultation, add new or refine existing factors for special financial consideration to provide incentives for particular programs, services or circumstances.
(g) Nothing in these regulations for state apportionment allocation shall require district governing boards to expend allocated revenues in specified categories of operation or according to workload measures contained herein.
(h) The Chancellor may develop and provide for district use, any procedures, processes and formulas he or she deems necessary to the utilization of the criteria and standards specified herein.
(i) The prospective funding priority for state budget negotiations shall be
(1) base revenues and budget stability, pursuant to sections 58771 and 58776,
(2) inflation and program improvement adjustments pursuant to sections 58773 and 58775(a), and
(3) growth and restoration, pursuant to sections 58774 and 58777. Restoration shall be included in priority (1) if funds have been reserved in the base for this purpose.

Note: Authority cited: Sections 66700, 70901 and 84750, Education Code. Reference: Section 84750, Education Code.

s 58706. Definitions.
For purposes of this subchapter:
(a) "Continuing credit enrollment" means the total number of unduplicated students whose attendance is eligible for state support and who are actively enrolled at the reporting college in a credit course for which census attendance accounting is taken as of the census date or for which positive attendance is taken and the student has generated at least eight student contact hours of positive attendance or was awarded a half unit of credit in any primary term, and who were enrolled in a credit course in a previous primary term within the last three academic years.
(b) "FTES in less than 100% leased space" means the state supported credit and noncredit FTES generated in facilities leased for less than 100% of the time (not reported as inventoried space) and paid for by general purpose funds of the district.
(c) "Gross square footage" means the sum of the floor areas of all facilities of the district reported on the annual inventory in accordance with Education Code, section 81821.
(d) "High revenue district" means a district that receives a level of funding as a percentage of the standard which is higher than the statewide average percent of standard.
(e) "Low revenue district" means a district that receives a level of funding as a percentage of the standard which is lower than the statewide average percent of standard.
(f) "New credit enrollment" means the total number of unduplicated students whose attendance is eligible for state support and who are actively enrolled at the reporting college in a credit course for which census attendance accounting is taken as of the census date or for which positive attendance is taken and the student has generated at least eight student contact hours of positive attendance or was awarded a half unit of credit in any primary term and who are not continuing credit enrollment as defined in subdivision (a).

Note: Authority cited: Sections 66700, 70901 and 84750, Education Code. Reference: Section 84750, Education Code.

s 58710. Description of Credit Instruction Category.
The credit instruction category of operation includes credit instructional activities involving students, academic administration (administration immediately above instructors), and course and curriculum development. These activities correspond to the California Community College Budget and Accounting Manual Classification of Expenditures by Activity, activity codes 0100 through 6000.

Note: Authority cited: Sections 66700, 70901 and 84750, Education Code. Reference: Section 84750, Education Code.

s 58712. Credit Instruction Standards.
(a) The credit instruction standards per college shall be as follows:
(1) Teaching faculty ratio of 75% full-time and 25% hourly.
(2) The statewide average faculty salaries equal to those paid by the California State University.
(3) A student/faculty ratio of 25 to 1.
(4) An amount equivalent to 21% of instructor salaries for the cost of staff support and supplies.
(5) An amount equivalent to 12.5% of the above standards for academic administration.
(6) An amount equivalent to the average annual expenditure per student workload measure for credit instruction of the ten states with the highest annual expenditures per student workload for credit instruction.
(7) The standards derived in subparagraphs (1) through (6) above, shall be adjusted by the scale factor defined in section 58714.
(b) The standard rate derived from application of the above standards to be used in the 1991-92 allocation process, contained in article 8 of this subchapter, for the credit instruction category is $3,195.85, as adjusted by the scale factor pursuant to section 58714, increased by the inflation adjustment pursuant to subdivision (a) of section 58773. For 1992-93 and each year thereafter, the standard rate shall be the rate used for the prior fiscal year increased by the inflation adjustment pursuant to subdivision (a) of section 58773.

Note: Authority cited: Sections 66700, 70901 and 84750, Education Code. Reference: Section 84750, Education Code.

s 58714. Credit Instruction Scale Factors.
(a) For single college districts:
(1) If credit FTES is less than 2,875, the scale factor is:
1.4647 - 1.52173913(FTES/10,000) + 0.151222(FTES/10,000) 2
(2) If credit FTES is greater than or equal to 2,875 and less than or equal to 10,000, the scale factor is:
1.055719298175 - 0.055719298(FTES/10,000)
(3) If credit FTES is greater than 10,000, the scale factor is 1.0.
(b) For each college in a multi-college district:
(1) If credit FTES is less than 2,875, the scale factor is:
1.4249995135523 - 1.480492605(FTES/10,000) + 0.14712(FTES/10,000) 2.
(2) If credit FTES is greater than or equal to 2,875 and less than or equal to 5,000, the scale factor is:
1.0271041758361 - 0.054209034(FTES/10,000).
(3) If credit FTES is greater than 5,000, the scale factor is 1.0.

Note: Authority cited: Sections 66700, 70901 and 84750, Education Code. Reference: Section 84750, Education Code.

s 58720. Description of Credit Instructional Services Category.
The credit instructional services category of operation includes library, media, and learning center services that are supplemental to the instructional effort. These services correspond to the California Community Colleges Budget and Accounting Manual Classification of Expenditures by Activity, activity code 6100.

Note: Authority cited: Sections 66700, 70901 and 84750, Education Code. Reference: Section 84750, Education Code.

s 58722. Credit Instructional Services Standards.
(a) The credit instructional services standards per college in 1990-91 dollars shall be as follows:
(1) Library staffing and materials based on the following model:
(A) The number of faculty librarians identified in Table 1 of section 58724 times the salary;
(B) The number of support staff identified in Table 1 of section 58724 times the salary;
(C) The number of periodicals identified in Table 1 of section 58724 times $73.50;
(D) 3% of the number of volumes identified in Table 1 of section 58724 times $40.32;
(E) Administrative and fixed costs of $21,777;
(F) Per student allocation of $1.89 per FTES;
(G) Book binding equal to [(FTES x 0.008) + $2,252] x $19.80;
(H) Technical processing costs equal to [3% of the number of volumes identified in Table 1 of section 58724] x $5.34;
(I) Contractual services for on-line bibliographic utility, automated library systems, and on-line data bases/indexes equal to $71,198.
(2) Media center staffing and materials based on the following model:
(A) The number of media faculty identified in Table 2 of section 58724 times the salary;
(B) The number of support staff identified in Table 2 of section 58724 times the salary;
(C) Number of video/film identified in Table 2 of section 58724 times 3% times $104.66;
(D) Number of other materials identified in Table 2 of section 58724 times 3% times $232.38;
(E) Per student allocation of $1.78 per FTES;
(F) Technical processing costs equal to [3% of the total number of video/film and other materials identified in Table 2 of section 58724] x $4.98.
(3) Learning center allocations calculated at $56.58 x FTES.
(b) The standard rate derived from application of the above standards to be used in the 1991-92 allocation process, contained in article 8 of this subchapter, for the credit instructional services category shall be
(1) $511,474 per college plus $60.41 per credit FTES, both increased by the inflation adjustment pursuant to subdivision (a) of section 58773, for colleges with less than or equal to 1,002 credit FTES, or
(2) $396,935 per college plus $174.76 per credit FTES, both increased by the inflation adjustment pursuant to subdivision (a) of section 58773, for colleges with credit FTES greater than 1,002 and less than or equal to 3,303, or
(3) $308,331 per college plus $201.59 per credit FTES, both increased by the inflation adjustment pursuant to subdivision (a) of section 58773, for colleges with credit FTES greater than 3,303. For 1992-93 and each fiscal year thereafter, the standard rates shall be the rates used for the prior fiscal year increased by the inflation adjustment pursuant to subdivision (a) of section 58773.

Note: Authority cited: Sections 66700, 70901 and 84750, Education Code. Reference: Section 84750, Education Code.

s 58724. Tables of Minimum Standards for Libraries and Media Centers.
(a) Table 1 consists of ALA/ACRL-AECT described minimum standards for libraries as follows:
TABLE 1

ALA/ACRL -AECT -Minimum Standards for Libraries (Modified)

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