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<ns0:Id>20250AB__212199INT</ns0:Id>
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<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2026-02-18</ns0:ActionDate>
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<ns0:SessionYear>2025</ns0:SessionYear>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Assembly Member Berman</ns0:AuthorText>
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<ns0:Name>Berman</ns0:Name>
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<ns0:Title> An act to add and repeal Section 84363 of the Education Code, relating to community colleges, and declaring the urgency thereof, to take effect immediately.</ns0:Title>
<ns0:RelatingClause>community colleges, and declaring the urgency thereof, to take effect immediately</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>Community colleges: current expense of education: exclusions.</ns0:Subject>
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<html:p>Existing law establishes the California Community Colleges, under the administration of the Board of Governors of the California Community Colleges, as one of the segments of public postsecondary education in this state. Existing law establishes community college districts throughout the state and authorizes these districts to provide instruction at community college campuses.</html:p>
<html:p>Existing law requires the expenditure, during each fiscal year, for the payment of salaries of classroom instructors by a community college district, of 50% of the district’s current expense of education. Existing law defines “current expense of education” as the gross total expended for certain expenses that include academic salaries, classified salaries, employee benefits, and books, supplies, and equipment replacement, but that generally exclude expenses for student
transportation, food services, and community services.</html:p>
<html:p>This bill, notwithstanding the above-described provisions, would authorize a community college district, for a period of 5 fiscal years following the 2025–26 fiscal year, or until specified federal funding is restored, whichever occurs first, to exclude from its current expense of education any local unrestricted expenditures from the community college district’s unrestricted general fund, as specified, that maintain student support functions that were previously funded though federal discretionary grants that have been terminated, nonrenewed, or defunded due to federal action on or after September 10, 2025. If a community college district exercises its authority pursuant to these provisions, the bill would require the community college district to annually certify eligibility to the office of the Chancellor of the California Community Colleges and would require the chancellor’s office to maintain documentation
and include as part of another specified report, any certifications it receives, as provided. The bill would make its provisions inoperative on July 1, 2031, or on the first day of the fiscal year following restoration of specified federal funding, whichever occurs first, and would repeal them on January 1 of the year following the inoperative date.</html:p>
<html:p>This bill would declare that it is to take effect immediately as an urgency statute.</html:p>
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<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
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<ns0:Num>SECTION 1.</ns0:Num>
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Section 84363 is added to the
<ns0:DocName>Education Code</ns0:DocName>
,
<ns0:Positioning>immediately following Section 84362</ns0:Positioning>
, to read:
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<ns0:Num>84363.</ns0:Num>
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(a)
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Notwithstanding Section 84362, for a period of five fiscal years following the 2025–26 fiscal year, or until federal funding is restored, whichever occurs first, a community college district may exclude, as part of its current expense of education, as that term is used and defined in Section 84362, any local unrestricted expenditures from the community college district’s unrestricted general fund, as defined by the California Community Colleges Budget and Accounting Manual, that maintain student support functions that were previously funded through federal discretionary grants that have been terminated, nonrenewed, or defunded due to federal action on or after September 10, 2025. For purposes of this subdivision, expenditures that are eligible for exclusion include all of the following programs that
previously received federal funding:
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<html:p>
(1)
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Strengthening Alaska Native and Native Hawaiian-Serving Institutions (20 U.S.C. Sec. 1059d).
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Strengthening Predominantly Black Institutions (20 U.S.C. Sec. 1059e).
</html:p>
<html:p>
(3)
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Strengthening Native American-Serving, Nontribal Institutions (20 U.S.C. Sec. 1059f).
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<html:p>
(4)
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Strengthening Asian American- and Native American Pacific Islander-Serving Institutions (20 U.S.C. Sec. 1059g).
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<html:p>
(5)
<html:span class="EnSpace"/>
Minority Science and Engineering Improvement (20 U.S.C. Sec. 1067 et seq.).
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
Federal TRIO Programs (20 U.S.C. Sec. 1070a–11 et seq.).
</html:p>
<html:p>
(7)
<html:span class="EnSpace"/>
Developing Hispanic-Serving Institutions (20 U.S.C. Sec. 1101 et seq.).
</html:p>
<html:p>
(8)
<html:span class="EnSpace"/>
Promoting Postbaccalaureate Opportunities for Hispanic Americans (20 U.S.C. Sec. 1102 et seq.).
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<html:p>
(b)
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Community college districts that choose to exclude expenditures pursuant to subdivision (a) shall annually certify eligibility to the chancellor’s office. The chancellor’s office shall maintain documentation and include certifications the chancellor’s office receives from community college districts in the annual report to the Legislature required pursuant to subdivision (i) of Section 84362.
</html:p>
<html:p>
(c)
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Expenditures excluded pursuant to this section shall not be considered in determining compliance with subdivision (d) of Section 84362 and the use of this exclusion by a community college district shall not constitute grounds to reduce
instructional expenditures. This section shall not reduce or otherwise affect a community college district’s obligation to do all of the following:
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<html:p>
(1)
<html:span class="EnSpace"/>
Maintain compliance with the requirement of subdivision (d) of Section 84362 that not less than one-half of the district’s current expense of education be expended for salaries of classroom instructors.
</html:p>
<html:p>
(2)
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Maintain compliance with the Faculty Obligation Number and related requirements established by the board of governors, including Section 87482.6 and Section 51025 of Title 5 of the California Code of Regulations.
</html:p>
<html:p>
(3)
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Not reduce the number of full‑time faculty positions or otherwise diminish the overall quality of instruction.
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<html:p>
(4)
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(A)
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Avoid any use of this exclusion to fund the
creation or expansion of administrative positions, or to provide compensation increases to administrators or supervisors beyond adjustments otherwise authorized by existing contracts or salary schedules.
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<html:p>
(B)
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For purposes of this paragraph, “administrator” and “supervisor” have the same meaning as defined in paragraph (2) of subdivision (b) of Section 84362.
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<html:p>
(5)
<html:span class="EnSpace"/>
Continue to treat as a matter of negotiation any decisions affecting instructional assignments, faculty load, or course offerings.
</html:p>
<html:p>
(d)
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This section shall become inoperative on July 1, 2031, or on the first day of the fiscal year following restoration of the federal funding described in subdivision (a), whichever occurs first, and shall be repealed on January 1 of the year following the date that this section becomes
inoperative.
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<ns0:Num>SEC. 2.</ns0:Num>
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<html:p>This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are:</html:p>
<html:p>In order to prevent the immediate disruption of essential student support services for economically disadvantaged, first-generation, and other vulnerable community college students as a result of sudden federal funding withdrawals, it is necessary that this bill go into immediate effect.</html:p>
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