SB 420 — CC Governance/Amend Medical Bd.

GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2017 S 21 SENATE BILL 420 House Committee Substitute Favorable 6/12/18 Short Title:

CC Governance/Amend Medical Bd.

of Trustees/Governance.

Senators Curtis and Barefoot (Primary Sponsors).

Rules and Operations of the Senate March 29, 2017 A BILL TO BE ENTITLED AN ACT TO PROVIDE FOR CIRCUMSTANCES IN WHICH THE STATE BOARD OF COMMUNITY COLLEGES MAY APPOINT AN INTERIM BOARD OF TRUSTEES TO ASSUME THE POWERS AND DUTIES OF A BOARD OF TRUSTEES;

TO CLARIFYREQUIRE THETHAT TIMEA FORBOARD ELECTIONS OF OFFICERSTRUSTEES FORMEET BOARDSAT OFLEAST TRUSTEES;ONCE EVERY TWO MONTHS;

AND TO REQUIREAUTHORIZE THATTHE ASTATE BOARD OF TRUSTEESCOMMUNITY MEETCOLLEGES ATTO LEASTREQUIRE SIXFINANCIAL TIMESAUDITS AIN YEAR;CERTAIN CIRCUMSTANCES.

TO AUTHORIZE THE STATE BOARD OF COMMUNITY COLLEGES TO REQUIRE FINANCIAL AUDITS IN CERTAIN CIRCUMSTANCES;

AND TO AMEND THE MEMBERSHIP OF THE NORTH CAROLINA MEDICAL BOARD.

SECTION 1.(a)1. Article 1 of Chapter 115D of the General Statutes is amended by adding a new section to read:

Article 1 of Chapter 115D of the General Statutes is amended by adding a new section to read:

– The State Board of Community Colleges is responsible for assuring that boards of trustees of the communitycollegescommunity complywithcolleges comply with applicable State laws, rules, and sound fiscal and management practices,practices. as defined in State Board policy.

If the State Board finds the college needs assistance with taking remedial action, the State Board may also appoint an advisory committee to provide support and recommendations to the college.

At a minimum, the advisory committee shall consist of representatives of the State Board of CommunityColleges, the NorthCarolina AssociationofCommunityCollegeTrustees, the North Carolina Association of Community College Presidents, and the System Office, and each party shall appoint its representative to the advisory committee.

– If, after receipt of the notice issued under subsection (a) of this section, a board of trustees willfully, or as a result of gross negligence, persists in refusing or failing to comply with the State laws, rules, or sound fiscal and management practices identified in the notice, the State Board of CommunityCollegesCommunity Colleges may adopt a resolution, upon approval of at least two-thirds of the members of the State Board attending the meeting in which the resolution is considered, tovacatethetermsofto theleadershipoftheboardoftrusteesvacate toinclude,butnotlimitedthe to,terms chairof the board of trustees and vice-chair.appoint an interim board of trustees to assume the duties and responsibilities of that board of trustees.

ThePrior respectiveto adopting the resolution, the State Board shall consult with the appointing authorities shallof appointthe board of trustees toand fulfillrepresentatives of the vacatedNorth termsCarolina Association of Community College Trustees and shallthe notNorth appointCarolina membersAssociation whoseof termsCommunity wereCollege vacatedPresidents pursuantregarding tothe thisproposed section.resolution.

If,The after the removal of the leadership of the board of trustees, a board of trustees willfully, or as *S420-v-2* General Assembly Of North Carolina Session 2017 a result of gross negligence, persists in refusing or failing to comply with the State laws, rules, or sound fiscal and management practices identified in the notice, the State Board ofshall Communityonly Collegesexercise mayadoptthis aauthority resolution,as uponan approvalextraordinary ofremedy atutilized least two-thirds of the members of the State Board attending the meeting in which the resolutionmost isextreme consideredcircumstances. to vacate the terms of the full board of trustees.

Prior to adopting either resolution, the State Board shall consult with the appointing authorities of the board of trustees and representatives of the North Carolina Association of Community College Trustees and the North Carolina Association of Community College Presidents regarding the proposed resolution.

The State Board shall only exercise this authority as an extraordinary remedy utilized in the most extreme circumstances and after all of the following remediation actions have been taken without correction of the identified problems:

(1) The State Board has clearly delineated the failures to comply with applicable State laws, rules, or sound fiscal and management practices.

(2) The advisory committee appointed consistent with subsection (a) of this section has met with thePresident ofthecollegeandthelocal boardoftrustees to discuss the problems in question and to assist the community college in question to resolve them.

(3) The State Board has vacated the terms of the leadership of the board of trustees, but the identified problems continue to persist.

(4) The State Board has issued a final warning providing the college with a deadline to resolve the identified problems.

– The adoption of the resolution to remove the full board under this section shall have the effect of vacating the terms of all of the members serving on the board of trustees.

115D-12, the State Board of Community Colleges shall appoint an interim five-member board of trustees for a period not to exceed 12 monthsmonths. with input from the advisorycommittee listed in subsection (a) of this section.

To preserve local autonomy, the appointing authorities of the local administrative area of the *S420-v-1* General Assembly Of North Carolina Session 2017 community college under G.S.

All appointees to the interim board of trustees shall be residents of the administrative area of the insititution for which they are selected or of counties contiguous thereto with the exception of members provided for in subsection (a) of G.S.

115D-12, Group Four.

– Within 60 days of the adoption of the resolution to remove the full board under this section, the State Board shall report to the General Assembly in accordance with G.S.

– The State Board of Community Colleges shall adopt any policies necessary to implement the provisions of this section." SECTION 1.(b)2. G.S.

G.S.

At the first meeting after its selection,heldselection, on or after July1, each board of trustees shall elect from its membership a chairman, chair, who shall preside at all board meetings, and a vice-chairman, vice-chair, who shall preside in the absence of the chairman.chair.

Each board of trustees shall meet as often as maybemay necessaryforbe necessary for the conduct of the business of the institution but shall meet at least once every three months.sixtwo timesmonths. a year.

Meetings may Page 2 Senate Bill 420-Second Edition General Assembly Of North Carolina Session 2017 be called bytheby the chairman chair of the board, a majorityofmajority of the trustees, or the chief administrative officer of the institution." SECTION 1.(c)3. G.S.

G.S.

"(a) Each communitycollegecommunity college shall besubjectbe subject to afinanciala financial audit aminimuma ofonceeveryminimum of once every two years.

The State Board of Community Colleges shall ensure that all colleges are audited in accordance with this section." SECTION 2.(a)4. G.S.

90-2(a)This readsact asis rewritten:effective when it becomes law.

"(a)Page There2 isSenate establishedBill the420-First NorthEdition Carolina Medical Board to regulate the practice of medicine and surgery for the benefit and protection of the people of North Carolina.

The Board shall consist of 13 members: