CCLME.ORG - DIVISION 6. CALIFORNIA COMMUNITY COLLEGES
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Note: Authority cited: Sections 66700, 70901, 71020.5 and 84500, Education Code. Reference: Section 70901, Education Code.

s 59027. Chief Administrative Officer Actions.
(a) The chief administrative officer, or the designee of that officer, shall:
(1) Personally supervise the classification of records.
(2) Mark each file or other container as to classification and the school year in which the records originated. If the records are classified as Class 3- Disposable, the chief administrative officer shall also mark the school year in which such records are to be destroyed.
(3) Supervise the destruction of records.
(b) The chief administrative officer or designee shall submit to the governing board a list of records recommended for destruction, and shall certify that no records are included in the list in conflict with these regulations.

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

s 59028. Board Action.
The governing board shall:
(a) Approve or disapprove the recommendation of its designee.
(b) Order a reclassification when necessary or desirable.
(c) Order by action recorded in the minutes (with lists attached) the destruction of records in accordance with these regulations.

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

s 59029. Manner of Destruction.
Upon the order of the governing board that specified records shall be destroyed, such records shall be permanently destroyed by such foolproof methods as shredding, burning, or pulping; and such destruction shall be supervised by the chief executive officer or other designee.

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

s 59030. Certification as to Content of Records Destroyed by Calamity.
Whenever in any college year the community college register of any instructor, or other records of any district are destroyed by conflagration or public calamity, preventing the instructor and college officers from making their annual reports in the usual manner and with accuracy, affidavits of the instructor, the president, or other officers of the district, certifying as to the contents of the destroyed register or other records, shall be accepted by all college authorities for all purposes pertaining to the district, except that of calculations of full-time equivalent students (FTES).

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

s 59031. Full-time Equivalent Student Records Where Area Hit by Calamity.
Whenever the full-time equivalent student of a community college district has been materially affected in any college year by conflagration, public calamity, or epidemic of unusual duration and prevalence, the regular annual reports of the instructor, the president, or officers of the district, shall be accepted by all college officers for all matters pertaining to the district, except that of full-time equivalent student.

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

s 59033. Attendance Accounting For Lost or Destroyed Records.
Whenever any attendance records have been lost or destroyed by conflagration or public calamity, attendance accounting related to such records shall be made in accordance with section 58031.

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

s 59040. College Year.

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

s 59041. Academic Year.

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

s 59100. General Authority of the Chancellor.
To provide comprehensive accountability in programs where the Chancellor's Office has regulatory or supervisory responsibility, the Chancellor is authorized as needed to have audits or reviews conducted or to investigate any audit or review citing which indicates that the allocation of state moneys or applicable federal funding may have been in error, and where necessary, to require action to resolve any substantial error as provided herein.

Note: Authority cited: Sections 66700, 70901, 71020.5, 84040 and 84500, Education Code. Reference: Sections 71020.5, 84040, 84040.5 and 84040.6, Education Code.

s 59102. Contracting For Annual Audits.
Arrangements for annual audits for any fiscal year as required by Section 84040 of the Education Code shall be made final no later than the May 1 preceding that fiscal year.

Note: Authority cited: Sections 70901, 84040 and 84500, Education Code. Reference: Sections 84040, 84040.5 and 84040.6, Education Code.

s 59104. Review of Annual Audits.
Each district governing board shall review the annual audit prescribed pursuant to Section 84040 of the Education Code at a public meeting.

Note: Authority cited: Sections 66700, 70901 and 70902, Education Code. Reference: Sections 70901 and 70902, Education Code.

s 59106. Annual Audit Reports Due Date.
Not later than December 31st, an audit report for each district for the preceding fiscal year required by Section 84040 of the Education Code shall be filed with the Board of Governors, the Department of Finance and other regulatory agencies in accordance with Section 84040.5 of the Education Code. The Chancellor may issue guidelines for use by districts in complying with this section.

Note: Authority cited: Sections 70901 and 84040, Education Code. Reference: Sections 84040, 84040.5 and 84040.6, Education Code.

s 59108. Chancellor's Review of Audit Citings.
(a) The Chancellor shall review the reports of audits conducted pursuant to Section 84040 of the Education Code, or any other audit or review assessing district compliance with audit responsibilities.
(b) Such review shall determine whether the audit or review reports contain citings which may warrant further investigation. Further investigation is warranted when there is a significant probability that the district has either:
(1) Failed to comply with attendance accounting standards, or
(2) Violated rules and regulations defining limitations on state support, or
(3) Failed to comply with any other standard which has been monitored by means of a compliance question devised by the Chancellor's Office or the Department of Finance.

Note: Authority cited: Sections 66700, 70901, 71020.5, 84040 and 84500, Education Code. Reference: Sections 84040, 84040.6 and 84500, Education Code.

s 59110. District's Right to Respond.
Pursuant to procedures established by the Chancellor, and prior to any actions to recover funds or to mandate other corrective measures, a district shall be given the opportunity to present information which might mitigate or refute any audit citing selected by the Chancellor for further investigation.

Note: Authority cited: Sections 66700, 70901, 71020.5, 84040 and 84500, Education Code. Reference: Sections 84040 and 84040.6, Education Code.

s 59112. Audit Resolution Actions.
(a) If, upon reviewing a citing, the district's response and any other available information, the Chancellor finds that there is a need for corrective action to resolve a citing, the Chancellor may require the district to do one or more of the following:
(1) Submit a corrected apportionment attendance report,
(2) Implement procedures to ensure future compliance with the rules and regulations in question, or
(3) Report periodically to the Chancellor on the status of actions taken to comply with the rules and regulations in question.
(b) If, upon reviewing a citing, the district's response and any other available information, the Chancellor finds that there is no need for corrective action to resolve the citing, the Chancellor shall so inform the district as expeditiously as possible.

Note: Authority cited: Sections 66700, 70901, 71020.5, 84040 and 84500, Education Code. Reference: Sections 70901 and 84040, Education Code.

s 59114. Apportionment Adjustments.
The Board of Governors shall make any adjustments necessary in future apportionments of all state funds to resolve errors identified through Chancellor audits or reviews under section 59100, and/or to correct any audit exceptions revealed by audit reports filed in accordance with section 59106 or section 84040.5 of the Education Code or by Chancellor reviews under section 59108.

Note: Authority cited: Sections 66700, 70901, 71020.5, 84040 and 84500, Education Code. Reference: Sections 70901, 84040 and 84040.5, Education Code.

s 59116. Student Attendance; Accountability for Accounting and Reporting; Minor or Inadvertent Errors; Apportionment; Discrepancy.
(a) It is the intent of the Board of Governors in adopting this section that districts shall be fully accountable for the accuracy of the accounting and reporting of student attendance and shall promptly resolve inaccuracies in attendance accounting and reporting. However, it is also the intent of the Board of Governors that any minor or inadvertent errors in a district's student attendance records shall be resolved as described below.
(b) The apportionment to a district for any fiscal year following the fiscal year in which an annual or special audit or Chancellor's review finding is made, or any fiscal year following the fiscal year for which a district declares a discrepancy subsequent to the submission of the annual or recalculation apportionment attendance report, shall not be affected by the audit, review or declaration, provided all of the following conditions are met:
(1) The district has corrected the basis for the audit or Chancellor's review finding or declaration of discrepancy to the satisfaction of the Chancellor.
(2) The district has unfunded FTES that would have otherwise been fundable in the fiscal year for which the audit or Chancellor's review finding or declaration of discrepancy was made. Any such unfunded FTES can be applied as a full or partial offset to any invalidated or lost FTES. Invalid or lost FTES not offset by unfunded FTES shall result in a negative revenue adjustment in the fiscal year in which the audit, Chancellor's review, or district declaration is resolved.
(c) Any positive adjustment to a district's apportionments resulting from the implementation of this section shall not affect prior year apportionments to other districts.

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

s 59118. Limitations on Adjustments.
(a) The district shall be held harmless against any Chancellor review or investigation, or any regular or special audit citing not resolved as provided in section 59112, within five years of the time when the final report of the review or investigation, or the citing is first presented to the governing board. Until five years has passed after the presentation of the final report of the review or investigation or the audit citing, the district shall retain all primary and support documentation which might need to be reviewed by the Chancellor to verify any district claim for State support.
(b) The five-year period described in subdivision (a) does not apply where the Chancellor finds deliberate district misrepresentations in connection with claims for state or federal funding.

Note: Authority cited: Sections 66700, 70901, 71020.5, 84040 and 84500, Education Code. Reference: Sections 76220 and 84040, Education Code.

s 59200. Scope.

Note: Authority cited: Sections 66700, 70901 and 84362, Education Code. Reference: Section 84362, Education Code.

s 59202. Delegation of Authority.

s 59204. Definitions.
For the purposes of Education Code Section 84362, the following terms shall be defined as set forth below.
(a) "Salaries of classroom instructors" as used in Education Code Section 84362 means:
(1) that portion of salaries paid for purposes of instruction of students by full-time and part-time instructors employed by the district, and
(2) all salaries paid to district classified employees who are
(A) assigned the basic title of "Instructional Aide" or other appropriate title designated by the governing board which denotes that the employees' duties include instructional tasks, and
(B) employed to assist instructors in the performance of their duties, in the supervision of students, and in the performance of instructional tasks. Instructional aides who perform instructional and noninstructional tasks shall have their salaries and benefits prorated. An employee shall be deemed to be under the supervision of an instructor for the purpose of Education Code Section 84362 if the employee performs duties under the general direction of an instructor.
In addition, salaries of classroom instructors shall include the cost of all benefits provided such instructors and instructional aides (Object of Expenditure code 3000 as defined in the California Community Colleges Budget and Accounting Manual).
(b) "Current expense of education" (CEE) shall include Object of Expenditures 1000 through 5000 for activity codes 0100 through 6700 as defined in the California Community College Budget and Accounting Manual less expenditures for activity code 64XX (Student Transportation) and less expenditures of:
(1) categorical aid received from the federal and state government requiring expenditure in a program not incurring any instructor salary expenditures;
(2) categorical aid received from the federal and state government requiring disbursement of the funds without regard to the requirement of Section 84362;
(3) funds for lease agreements for plant and equipment;
(4) funds received from the federal or state government pursuant to the "Economic Opportunity Act of 1964";
(5) state or federal funds received for grants to community college students or for the employment of community college students; and
(6) other monies received which are restricted by an external party, law or other legal requirement.
(c) "Serious hardship" shall mean conditions under which:
(1) conformance with the 50% requirement during the year of deficiency would have resulted in the district's inability to discharge financial liabilities;
(2) the first year of infusion of new moneys resulted in the district's inability to comply with the requirements of Education Code Section 84362;
(3) unanticipated, unbudgeted, and necessary expenditures resulted in the district's inability to comply with the requirements of Education Code Section 84362; or
(4) the district has expended funds pursuant to Section 59213(f).
In viewing a district's inability to discharge financial liabilities, consideration will be given to such factors as (1) the district's general fund ending balance, less noncash assets, is less than three percent (3%) of general fund expenditures (Object of Expenditure codes 1000 through 6000) for the year application for exemption is filed, or (2) the district's credit base FTES for the year for which exemption is being sought was less than 3,001. New monies shall mean monies which are allocated for transitional program improvement pursuant to Educational Code Section 84755. To the extent that such monies are built into the district's general apportionment funding in the following years, no further consideration for serious hardship will be given.
Unanticipated, unbudgeted, and necessary expenditures shall mean certifiable expenditures that the district could not have reasonably anticipated or budgeted for, and that were necessary for the district to incur. Such expenditures may include, but are not necessarily limited to, expenditures resulting from arbitration or litigation; replacement or repair of utility services; an abnormal increase in the cost of energy, insurance, or security; or a cost increase mandated by state or federal law.
In determining the impact of the infusion of new monies, the Chancellor's Office shall determine the amount of new monies pursuant to Education Code Section 84755 which were expended for salaries of classroom instructors and for the current expense of education. Following the Chancellor's determination, the percentage shall be recalculated without the effect of the expenditure of these new monies. If the district would have complied with the requirements of Education Code Section 84362 without the expenditure of new monies, a full exemption may be granted. If the district still does not comply with the requirements of Education Code Section 84362, then a partial exemption may be granted to the degree the deficiency was increased by the expenditure of these new monies.
(d) "Attendance FTES" means the units of full-time equivalent student or equivalent accrued by the district during the fiscal year as a result of the attendance of all students as reported to the Chancellor's Office on prescribed attendance reports.
(e) "Community college districts of comparable type functioning under comparable conditions" are deemed to be any which:
(1) had met the 50% salary requirement for the year in question;
(2) had CEE per attendance FTES which is within $250 of the district seeking exemption; and
(3) had attendance FTES which is within 30% of the applicant district. If Subsections (e)(2) and (e)(3) above do not yield at least 5 districts, then Subsection (e)(2) will be expanded by $50 increments and Subsection (e)(3) will be expanded by 5% increments until at least 5 districts are determined.
(f) Payment of comparable salaries of classroom instructors will be deemed to exist when a district's expenditure for salaries of classroom instructors, divided by attendance FTES, equals or exceeds the same aggregated data for districts functioning under comparable conditions.

Note: Authority cited: Sections 70901 and 84362, Education Code. Reference: Section 84362, Education Code.

s 59206. District Application for Exemption.
(a) After the conclusion of each fiscal year, each district shall determine if 50% of its current expense of education (CEE) was expended for the payment of salaries of classroom instructors after exclusion from the numerator and denominator of amounts spent from any nonexempted deficiency from the second preceding fiscal year.
(b) In the event a district has not expended the required amount and it appears to its governing board that such expenditure would have resulted in serious hardship to the district or in the payment of excessive salaries of classroom instructors, it may apply to the Chancellor in a form and manner to be determined by the Chancellor not later than September 15 following the year of deficiency for exemption from the requirements of Education Code section 84362.

Note: Authority cited: Sections 70901 and 84362, Education Code. Reference: Section 84362, Education Code.

s 59207. Notice to Academic Employees.
The district applying for exemption shall immediately, but not less than thirty (30) days preceding the public hearing to determine the basis on which it will apply for exemption, provide the exclusive representative of the district's academic employees and the district or college academic senate with a copy of such application.

Note: Authority cited: Sections 70901 and 84362, Education Code. Reference: Section 84362, Education Code.

s 59208. Consideration by District Governing Board.
(a) The governing board of the district applying for exemption shall hold a public hearing to determine the basis for the district's application for exemption. This public hearing shall be held during a meeting of the district governing board and shall be noticed as a separate item on the agenda for the meeting as required by Education Code Section 72121 except that the notice required must be given at least 30 days prior to the meeting. The governing board shall give interested parties a reasonable opportunity to be heard. The governing board shall then determine whether expenditure of the required amount would have resulted in serious hardship to the district or in the payment of salaries of classroom instructors in excess of the salaries of classroom instructors paid by other districts of comparable type and functioning under comparable conditions.
(b) The district shall then, not later than December 1, or if the Chancellor has granted the district an extension in writing, not later than December 15, transmit the findings of the governing board to the Chancellor in a form and manner to be determined by the Chancellor. The final figures used by the Chancellor's Office as the basis for determining the degree of compliance with Education Code Section 84362 shall be those submitted by the district as of December 1, or if granted an extension, December 15.
(c) Failure to comply with the provisions of this Section shall void the district's application for exemption.

Note: Authority cited: Sections 70901 and 84362, Education Code. Reference: Section 84362, Education Code.

s 59209. Response by Academic Employees.
Within two weeks of the public hearing or by the date the district is required to transmit its findings to the Chancellor, whichever is later, the academic employee organization(s) required to be notified pursuant to Section 59207 may submit an additional written statement opposing the application to the Chancellor and requesting a hearing by the Chancellor.

Note: Authority cited: Sections 70901 and 84362, Education Code. Reference: Section 84362, Education Code.

s 59210. Chancellor's Recommendation.
(a) The Chancellor shall annually determine the percentage of current expenses of education expended for salaries of classroom instructors during the preceding fiscal year for each district from information submitted on the "Annual Financial and Budget Report" (CCFS-311) and from information reported in the annual audit reports required by Education Code Section 84040.
(b) The Chancellor's Office shall analyze each application for exemption together with statements of opposition submitted by the academic employee organization(s) and the audit report submitted pursuant to Education Code Section 84040 to determine compliance with Education Code Section 84362. If requested by the exclusive representative of the district's academic employees or the district, the Chancellor or designee shall hold a hearing to collect and consider additional information.
(c) If the district filed an application for an exemption as required by these regulations, the Chancellor shall recommend one of the following actions to the Board of Governors:
(1) that the Board deny the application;
(2) that the Board grant the application; or
(3) that the Board grant the application in part.
(d) The Board of Governors shall determine whether the facts presented by the Chancellor established that application of the 50 percent salary requirement would have resulted in serious hardship or in expenditures for salaries of classroom instructors in excess of that paid by comparable districts.

Note: Authority cited: Sections 70901 and 84362, Education Code. Reference: Section 84362, Education Code.

s 59211. Board of Governors Action.
The Board of Governors shall, no later than March 1, receive the Chancellor's recommendations. The Board shall then deny, grant, or grant in part the district's application.
Exemption shall be granted only to the limit of the deficiency in an amount above that necessary to raise the district's expenditures for salaries of classroom instructors per attendance FTES to the levels of the average of the comparison districts or in an amount equal to that which would have been needed by the district to avoid a serious hardship.

Note: Authority cited: Sections 70901 and 84362, Education Code. Reference: Section 84362, Education Code.

s 59212. Amendments to District Applications.
(a) The Chancellor may accept amendments to the district's application for exemption if the Chancellor determines that the proposed amendments are nonsubstantive rather than substantive. Nonsubstantive amendments are only those which result from arithmetical errors and miscategorization of expenses. Such amendments must also be certified by the district's independent auditor.
(b) A district filing an amendment to its application for exemption under this section is not required to follow the procedures of section 59206. However, the district shall furnish a copy of the amendment to the faculty organization required to be notified pursuant to section 59207 at the same time the amendment is filed with Chancellor. Where a hearing of the Chancellor has been requested pursuant to section 59210, such amendment must be submitted 20 working days prior to the date of the hearing.

Note: Authority cited: Sections 70901 and 84362, Education Code. Reference: Section 84362, Education Code.

s 59213. Chancellor's Action.
Where a district has failed to file an application for exemption in the manner required by these regulations, or where the Board of Governors has denied any part of a district's deficient amount, the Chancellor shall designate the deficient amount or nonexempted portion thereof to be deposited in the county treasury to the credit of the district from state apportionments but unavailable for expenditure until the district has complied with the requirements of Education Code section 84362 or otherwise instructed by the Chancellor's Office. Such amount may be reduced by expenditures for salaries of classroom instructors exceeding the requirements of Eduction Code section 84362 in the two years immediately following the year of noncompliance. The Chancellor shall instruct the district to develop a plan as to how the amount of the deficiency not exempted by the Board of Governors will be expended for salaries of classroom instructors during the next fiscal year.
The governing board shall certify a plan for achieving compliance with the requirements of Education Code section 84362 with regard to the nonexempted deficiency. The plan shall specify expenditures for salaries of classroom instructors over and above the amount regularly budgeted for the year. The plan shall be submitted to the Chancellor by June 30 of the year before the nonexempted deficiency must be expended. The plan may include consideration of such factors as:
(a) salary increases for instructors (either on- or off-salary schedule);
(b) additional instructors;
(c) additional instructional aides within the definition in section 59204.
(d) conversion of part-time instructors to full-time.
(e) reassignment of qualified personnel from other activities to classroom instruction; and
(f) items other than salaries of classroom instructors, i.e. instructional materials, additional library or counseling staff, etc., with the mutual agreement of the exclusive representative of the district's academic employees or, if none exists, the district or college academic senate, where the district can document the necessity, showing adverse impact on the district if such expenditures were not allowed.

Note: Authority cited: Sections 70901 and 84362, Education Code. Reference: Section 84362, Education Code.

s 59214. Failure to Comply.
If the district fails to comply with the requirements of Education Code section 84362 within two years following the year for which exemption is being sought, an amount equal to the nonexempt amount or the amount by which the district failed to comply with Education Code section 84362, whichever is less, shall be deducted from apportionments made to the district on a one-time basis during the third year following the year of the deficiency. The nonexempted amount shall be reduced by any amount by which the district has exceeded fifty percent (50%) of the current expense of education in the two years immediately following the year for which exemption has been sought.

Note: Authority cited: Sections 70901, 84362, Education Code. Reference: Section 84362, Education Code.

s 59250. Scope.
(a) The governing body of a community college district may establish auxiliary organizations for the purpose of providing supportive services and specialized programs for the general benefit of its college or colleges, as determined by the governing board. Such organizations shall be established and maintained in accordance with the provisions of article 6 (commencing with section 72670) of chapter 6, part 45, division 7, title 3 of the Education Code, and the regulations contained in this subchapter.
(b) Other organizations which provide supportive services and specialized programs for the general benefit of colleges, which are authorized by other provisions of law, need not be established as an auxiliary organization pursuant to this subchapter. If, however, an organization is not established as an auxiliary organization in accordance with the provisions of this subchapter, its powers and duties will continue to be defined by the other provisions of law which provide for its establishment and operation.
(c) An auxiliary organization which was in existence on or before August 31, 1980, may continue to operate under the provisions of article 6 (commencing with section 72670) of chapter 6, part 45, division 7, title 3 of the Education Code, as it read on August 30, 1980. Such organizations, however, shall operate only in accordance with the provisions of former article 6; and shall not, unless established and maintained in accordance with the provisions of this subchapter, be vested with any additional authority or flexibility that may be provided by this subchapter and the current article 6 (commencing with section 72670) of chapter 6, part 45, division 7, title 3 of the Education Code.

Note: Authority cited: Sections 66700, 70901 and 72672, Education Code. Reference: Article 6 (commencing with Section 72670), Chapter 6, Part 45, Division 7, Title 3, Education Code.

s 59251. Definitions.
For the purposes of this subchapter, the following definitions shall be applied:
(a) Auxiliary organization: An "auxiliary organization" is an entity authorized by section 72670 of the Education Code which is established by the governing board in accordance with the provisions of this subchapter and Article 6 (commencing with section 72670) of chapter 6, part 45, division 7, title 3 of the Education Code.
(b) Written agreement: A "written agreement" is an agreement between a community college district and an auxiliary organization which may implement or otherwise address the requirements of subdivision (j) of section 59257 of this subchapter.

Note: Authority cited: Sections 66700, 70901 and 72672, Education Code. Reference: Article 6 (commencing with Section 72670), Chapter 6, Part 45, Division 7, Title 3, Education Code.

s 59255. Conditions for Establishment.
The following conditions must be met before an auxiliary organization may be established by a community college district:
(a) The district's governing board must adopt implementing regulations for auxiliary organizations. Such regulations must, at least, address the subjects specified in section 59257 of this subchapter;
(b) The district's implementing regulations must be reviewed and approved by the Chancellor of the California Community Colleges;
(c) The particular auxiliary organization being established may only provide recognized services or functions as specified in section 59259;
(d) The district governing board must approve the establishment of the auxiliary organization; and
(e) The district must at such time as it recognizes an auxiliary organization, submit to the Chancellor any written agreement with an auxiliary organization, as well as the articles of incorporation, bylaws, or other governing instrument of the particular auxiliary organization.

Note: Authority cited: Sections 66700, 70901 and 72672, Education Code. Reference: Article 6 (commencing with Section 72670), Chapter 6, Part 45, Division 7, Title 3, Education Code.

s 59257. Implementing Regulations.
Each district governing board wishing to establish an auxiliary organization must adopt implementing regulations, and submit such regulations to the Chancellor for approval. The implementing regulations must contain provisions which address at least the following subjects:
(a) Provisions which set forth the district's method for recognizing an auxiliary organization, which procedure must include a public hearing prior to such recognition;
(b) Provisions which limit authorized auxiliary organizations to those performing recognized functions described in section 59259;
(c) Provisions which implement section 72674 of the Education Code, regarding composition and meetings of boards of directors of auxiliary organizations;
(d) Provisions which implement subdivision (a) of section 72672 of the Education Code, regarding the audit of auxiliary organizations;
(e) Provisions which implement subdivision (c) of section 72672 of Education Code, regarding salaries, working conditions, and benefits for full-time employees of auxiliary organizations;
(f) Provisions which implement section 72675 of the Education Code, regarding expenditures and fund appropriations by auxiliary organizations. In implementing subdivision (b)(2) of section 72675, the district regulations may specify different standards for different types of auxiliary organizations.
(g) Provisions which establish recordkeeping responsibilities of auxiliary organizations;
(h) Provisions which establish a procedure for periodic review of each auxiliary organization by the district to insure that it is complying with sections 72670-72682 of the Education Code, district implementing regulations, any written agreement with the district, and its articles of incorporation or bylaws; and
(i) Provisions which prohibit the district from transferring any of its funds or resources other than funds or resources derived from gifts or bequests, to any of its auxiliary organizations, when the purpose of such transfer is either to avoid laws or regulations which constrain community college districts or to provide the district with an unfair advantage with respect to the application of any state funding mechanism. Such state funding mechanisms include, but are not limited to, general apportionment funding, capital outlay funding, Extended Opportunity Programs and Services funding, and funding for programs and services for students with disabilities.
(j) Provisions which shall specify the following:
(1) The function or functions which the auxiliary organization is to manage, operate or administer;
(2) A statement of the reasons for administration of the functions by the auxiliary organization instead of by the college under usual district procedures;
(3) The areas of authority and responsibility of the auxiliary organization and the college;
(4) The facilities to be made available, if any, by the district to permit the auxiliary organization to perform the functions specified in the implementing regulations or written agreement;
(5) The charge or rental to be paid to the district by the auxiliary organization for any district facilities used in connection with the performance of its function. The charge or rental specified shall not require involved methods of computation, and should be identified in sufficient time before its incurrence so that the auxiliary organization may determine to what extent it shall be liable therefor;
(6) Full reimbursement to the district for services performed by district employees under the direction of the auxiliary organization. No more than 50% of the reimbursement by an auxiliary organization may be made in the form of non-monetary benefits that the auxiliary organization provides to a community college district, such as increased community awareness or other such benefits that are agreed upon by district officials and the auxiliary organization. Such non-monetary benefits shall be assigned a good-faith reimbursement value by the district. Methods of proration where services are performed by district employees for the auxiliary organization shall be simple and equitable;
(7) A simple and stable method of determining in advance to what extent the auxiliary organization shall be liable for indirect costs relating to federally-sponsored programs;
(8) The responsibility for maintenance and payment of operating expenses;
(9) The proposed expenditures for public relations or other purposes which would serve to augment district appropriations for operation of the college. With respect to expenditures for public relations or other purposes which would serve to augment district appropriation for the college, the auxiliary organization may expend funds in such amount and for such purposes as are approved by the board of directors of the auxiliary organization. The governing board shall name a designee who shall file with the governing board a statement of auxiliary organizations' policies on accumulation and use of public relations funds. The statement will include the policy and procedure on solicitation of funds, source of funds, amounts, and purpose for which the funds will be used, allowable expenditures, and procedures of control;
(10) The disposition to be made of net earnings derived from the operation of facilities owned or leased by the auxiliary organization and provisions for reserves;
(11) The disposition to be made of net assets on cessation of the operations under the agreement; and
(12) Provisions which require a covenant of the auxiliary organization to maintain its existence throughout the period of the agreement and to operate in accordance with sections 72670-72682 of the Education Code, and with the regulations contained in this subchapter as well as district implementing regulations.
In addressing the requirements of this subdivision in its district implementing regulations, a district may provide for such requirements in a written agreement or agreements with an auxiliary organization. The agreement shall provide for all requirements of this subdivision which have not been addressed in the district implementing regulations. Notwithstanding subdivision (e) of section 59255, if the requirements of this subdivision are provided for in the written agreement rather than the district's implementing regulations, the auxiliary organization may not be recognized by the district until the agreement is submitted to the Chancellor for approval.

Note: Authority cited: Sections 66700, 70901 and 72672, Education Code. Reference: Article 6 (commencing with Section 72670), Chapter 6, Part 45, Education Code.

s 59259. Recognized Functions.
The functions to be undertaken by auxiliary organizations are for the purpose of providing activities which are an integral part of the community college educational programs. The following supportive services and specified programs which may be developed and operated by auxiliary organizations have been determined by the Board of Governors to be appropriate:
(a) Student association or organization activities;
(b) Bookstores;
(c) Food and campus services;
(d) Student union programs;
(e) Facilities and equipment;
(f) Loans, scholarships, grants-in-aids;
(g) Workshops, conferences, institutes, and federal projects;
(h) Alumni activities;
(i) Supplementary health services;
(j) Gifts, bequests, devises, endowments and trusts; and
(k) Public relations programs.

Note: Authority cited: Sections 66700, 70901 and 72672, Education Code. Reference: Sections 72670 and 72672, Education Code.

s 59263. Auxiliary Organizations in Good Standing.
(a) Each district which establishes one or more auxiliary organizations shall prepare and keep current a list of auxiliary organizations in good standing. All auxiliary organizations which, after periodic review in the manner specified by district implementing regulations, are found to be in compliance with applicable laws and regulations, shall be included on this list.
(b) When the chief executive officer or other designee of a district has reason to believe that a particular organization should be removed from this list, he or she shall give the board of directors of such organization reasonable notice that a conference will be held to determine whether grounds for removal do in fact exist, and representatives of said board shall be entitled to be present at such conference and to be heard. Based upon such conference, the chief executive officer or other designee shall recommend to the district governing board whether a particular organization should be removed from the list. The district governing board may, in its sole discretion, remove such an auxiliary organization from said list, and may make such other provisions consistent with law as may be appropriate with respect to an auxiliary organization not included on said list.

Note: Authority cited: Sections 66700, 70901 and 72672, Education Code. Reference: Section 72672, Education Code.

s 59265. Ongoing Responsibilities.
Each district governing board which establishes one or more auxiliary organizations shall:
(a) Insure that an audit on each auxiliary organization is performed annually in the manner prescribed by subdivision (a) of section 72672 of the Education Code; and that a copy of said audit is submitted to the Chancellor;
(b) Submit any changes in district implementing regulations to the Chancellor for approval;
(c) Submit to the Chancellor any changes made in any written agreement, articles of incorporation, bylaws or other governing instrument pertaining to any established auxiliary organization;
(d) Periodically review each auxiliary organization for compliance with Education Code sections 72670-72682, the regulations contained in this subchapter and district implementing regulations, any written agreement, and the auxiliary organization's articles of incorporation, bylaws or other governing instrument. Such review shall be conducted in accordance with the procedure specified in the district implementing regulations;
(e) Prepare and keep current a list of auxiliary organizations in good standing in the manner provided for in section 59263. A copy of the initial list of auxiliary organizations in good standing, as well as any updated version of such list shall be forwarded to the Chancellor; and
(f) Report to the Chancellor, as may be required from time to time, on the operations of its auxiliary organizations.

Note: Authority cited: Sections 66700, 70901 and 72672, Education Code. Reference: Article 6 (commencing with Section 72670), Chapter 6, Part 45, Division 7, Title 3, Education Code.

s 59270. Procedures for Annual Audits and Financial Reporting.
The Chancellor shall prescribe the reporting and auditing procedures for auxiliary organizations. Districts and auxiliary organizations shall apply and comply with such procedures.

Note: Authority cited: Sections 66700, 70901 and 72672, Education Code. Reference: Article 6 (commencing with section 72670), Chapter 6, Part 45, Education Code.

s 59272. Review of District Implementing Regulations.
The Chancellor shall review and approve or disapprove district implementing regulations no later than 60 days after receipt. Implementing regulations which satisfactorily address the minimum contents specified in section 59257 shall be approved. Implementing regulations which are disapproved shall be returned with a statement of reasons as to why they were rejected. Regulations that have not been disapproved by the Chancellor within 60 days of receipt shall be deemed to be approved until such a time as the Chancellor notifies the district that a provision of the implementing regulations must be revised and a statement of the reason for the revision.

Note: Authority cited: Sections 66700, 70901 and 72672, Education Code. Reference: Article 6 (commencing with Section 72670), Chapter 6, Part 45, Education Code.

s 59274. Retention of Documentation.

Note: Authority cited: Sections 71020 and 72672, Education Code. Reference: Article 6 (commencing with Section 72670), Chapter 6, Part 45, Education Code.

s 59276. Annual Report to Legislature.

Note: Authority cited: Sections 71020 and 72672, Education Code. Reference: Section 72681, Education Code.

s 59300. Purpose.
The purpose of this subchapter is to implement the provisions of California Government Code sections 11135 through 11139.5, the Sex Equity in Education Act (Ed. Code s 66250 et seq.), title VI of the Civil Rights Act of 1964 (42 U.S.C. s 2000d), title IX of the Education Amendments of 1972 (20 U.S.C. s 1681), section 504 of the Rehabilitation Act of 1973 (29 U.S.C. s 794), the Americans with Disabilities Act of 1990 (42 U.S.C. s 12100 et seq.) and the Age Discrimination Act (42 U.S.C. s 6101), to the end that no person in the State of California shall, in whole or in part, on the basis of ethnic group identification, national origin, religion, age, sex, race, color, ancestry, sexual orientation, or physical or mental disability, or on the basis of these perceived characteristics or based on association with a person or group with one or more of these actual or perceived characteristics, be unlawfully denied full and equal access to the benefits of, or be unlawfully subjected to discrimination under any program or activity that is administered by, funded directly by, or that receives any financial assistance from, the Chancellor or Board of Governors of the California Community Colleges.

Note: Authority cited: Sections 66271.1, 66700 and 70901, Education Code; and Section 11138, Government Code. Reference: Sections 66250 et seq. and 72011, Education Code; Sections 11135-11139.5, Government Code; Sections 422.6 and 422.55, Penal Code; Title 20, United States Code, Section 1681; Title 29, United States Code, Section 794; and Title 42, United States Code, Sections 2000d, 6101 and 12100, et seq.

s 59301. Prohibited Discrimination.

Note: Authority cited: Section 11138, Government Code; and Sections 71020 and 71025, Education Code. Reference: Sections 11135 and 11138, Government Code.

s 59302. Academic Requirements.
Nothing in this subchapter shall be interpreted to prohibit bona fide academic requirements for a specific community college program, course or activity.

Note: Authority cited: Sections 66271.1, 66700 and 70901, Education Code; and Section 11138, Government Code. Reference: Sections 66250 et seq. and 72011, Education Code; and Section 11135, Government Code.

s 59303. Delegation of Authority.

Note: Authority cited: Section 11138, Government Code; and Sections 70901 and 71090, Education Code. Reference: Sections 11135 and 11138, Government Code.

s 59304. Intent.
It is the intent of the Board of Governors that the Chancellor assist community college districts in recognizing and eliminating unlawful discrimination that may exist in their programs and activities and in meeting the requirements of this subchapter. Punitive action authorized by this subchapter will be taken only when remedial action has failed to eliminate unlawful discrimination from the programs and activities of a community college district.

Note: Authority cited: Sections 66271.1, 66700 and 70901, Education Code; and Section 11138, Government Code. Reference: Sections 66250 et seq. and 72011, Education Code; and Sections 11135, 11137 and 11139, Government Code.

s 59305. Operative Date.

Note: Authority cited: Section 11138, Government Code; and Sections 71020 and 71025, Education Code. Reference: Sections 11135 and 11138, Government Code.

s 59306. Visitor Parking for Persons with Disabilities.
(a) Each community college district shall, consistent with the requirements of Education Code section 67301, provide visitor parking at each of its colleges or centers at no charge to persons with disabilities or to those providing transportation for such persons.
(b) For purposes of this section only, "persons with disabilities" are those who:
(1) qualify as disabled persons pursuant to section 22511.5 of the Vehicle Code; or
(2) if they were students, would be entitled to special parking provided to students with disabilities pursuant to subchapter 1 (commencing with section 56000) of chapter 7 of this division.
(c) Parking at no charge shall be available to persons with disabilities who are visitors, and to those providing transportation to such persons, in those parking facilities which are most accessible to administrative offices, libraries, and other facilities which the district finds are most used by visitors.
(d) Each community college district shall post in conspicuous places notice that parking is available without charge to persons with disabilities who are visitors and to those providing transportation for such persons.
(e) When parking provided pursuant to this section is located in an area where access is controlled by a mechanical gate, the district shall ensure that accommodations are made for persons with disabilities who are unable to operate the gate controls. Accommodations may be provided by an attendant assigned to assist in the operation of the gate or by any other effective means deemed appropriate by the district.
(f) Parking fees collected pursuant to Education Code section 76360 shall be used to offset any costs resulting from compliance with the requirements of this section.

Note: Authority cited: Sections 66271.1, 66700, 67301 and 70901, Education Code; and Section 11138, Government Code. Reference: Sections 66250 et seq., 67301, 72011 and 76360, Education Code; and Section 22511.5, Vehicle Code.

s 59307. Sexual Harassment and Sex Discrimination.

Note: Authority cited: Sections 232 and 70901, Education Code; and Section 11135, Government Code. Reference: Sections 200 et seq., Education Code. (continued)