BILL NUMBER: AB 2173	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JULY 10, 2008
	AMENDED IN SENATE  JULY 2, 2008
	AMENDED IN SENATE  JUNE 23, 2008
	AMENDED IN ASSEMBLY  APRIL 10, 2008

INTRODUCED BY   Assembly Member Caballero

                        FEBRUARY 20, 2008

   An act to amend Sections 65995.5 and 65995.6 of the Government
Code, relating to public schools facility financing.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2173, as amended, Caballero. Public schools facility financing.

   (1) Existing law authorizes the governing board of a school
district to levy a fee, charge, dedication, or other requirement
against any construction within the boundaries of the school district
for the purpose of funding the construction or reconstruction of
school facilities. A governing board of a school district may
increase the levy, as prescribed, if state funds for new school
facility construction are not available, as defined. As part of the
specified process for levying a fee, charge, dedication, or other
requirement against any construction within the boundaries of the
school district, the governing board of a school district is required
to adopt, by resolution, a school facilities analysis at a public
hearing.
   This bill would revise the process by which a governing board
calculates the maximum fee, charge, dedication, or other requirement
against school facility construction that may be collected. The
calculation of site development costs also would be changed, as
specified. A governing board would no longer be required to identify
and consider school district surplus property as part of the
governing board's analysis of school facility needs. Any member of
the public would be able to request in writing a meeting with the
governing board of a school district for purposes of discussing and
understanding the school facility needs analysis, and the governing
board would be required to hold a meeting as requested at least 5
days prior to the public hearing to adopt the school facilities needs
analysis. By imposing new duties on local officials, this bill would
impose a state-mandated local program.
   (2) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 65995.5 of the Government Code is amended to
read:
   65995.5.  (a) The governing board of a school district may impose
the amount calculated pursuant to this section as an alternative to
the amount that may be imposed on residential construction calculated
pursuant to subdivision (b) of Section 65995.
   (b) To be eligible to impose the fee, charge, dedication, or other
requirement up to the amount calculated pursuant to this section, a
governing board shall do all of the following:
   (1) Actively participate in the new construction funding program
by making timely applications for apportionments to the State
Allocation Board for new construction funding for which it is
eligible and by being determined by the board to meet the eligibility
requirements for new construction funding set forth in Article 2
(commencing with Section 17071.10) and Article 3 (commencing with
Section 17071.75) of Chapter 12.5 of Part 10 of the Education Code. A
governing board that submits an application to determine the
district's eligibility for new construction funding shall be deemed
eligible if the State Allocation Board fails to notify the district
of the district's eligibility within 120 days of receipt of the
application.
   (2) Conduct and adopt a school facility needs analysis pursuant to
Section 65995.6.
   (3) Meet at least two of the following:
   (A) The district has placed on the ballot in the previous eight
years a local general obligation bond to finance school facilities
and the measure received at least 50 percent plus one of the votes
cast.
   (B) The district meets any of the following:
   (i) The district has issued debt or incurred obligations for
capital outlay in an amount equivalent to 15 percent of the district'
s local bonding capacity, including indebtedness that is repaid from
property taxes, parcel taxes, the district's general fund, special
taxes levied pursuant to Section 4 of Article XIII A of the
California Constitution, special taxes levied pursuant to Chapter 2.5
(commencing with Section 53311) of Division 2 of Title 5 that are
approved by a vote of registered voters, special taxes levied
pursuant to Chapter 2.5 (commencing with Section 53311) of Division 2
of Title 5 that are approved by a vote of landowners prior to
November 4, 1998, and revenues received pursuant to the Community
Redevelopment Law (Part 1 (commencing with Section 33000) of Division
24 of the Health and Safety Code). Indebtedness or other obligation
to finance school facilities to be owned, leased, or used by the
district that is incurred by another public agency shall be counted
for the purpose of calculating whether the district has met the debt
percentage requirement contained in this clause.
   (ii) The district has issued debt or incurred obligations for
capital outlay in an amount equivalent to 30 percent of the district'
s local bonding capacity, including indebtedness that is repaid from
property taxes, parcel taxes, the district's general fund, special
taxes levied pursuant to Section 4 of Article XIII A of the
California Constitution, special taxes levied pursuant to Chapter 2.5
(commencing with Section 53311) of Division 2 of Title 5 that are
approved by a vote of registered voters, special taxes levied
pursuant to Chapter 2.5 (commencing with Section 53311) of Division 2
of Title 5 that are approved by a vote of landowners after November
4, 1998, and revenues received pursuant to the Community
Redevelopment Law (Part 1 (commencing with Section 33000) of Division
24 of the Health and Safety Code). Indebtedness or other obligation
to finance school facilities to be owned, leased, or used by the
district that is incurred by another public agency shall be counted
for the purpose of calculating whether the district has met the debt
percentage requirement contained in this clause.
   (iii) The district has a local bonding capacity of five million
dollars ($5,000,000) or less.
   (C) At least 30 percent of the high school district's pupils are
on a multitrack year-round schedule, and at least 40 percent of the
pupils enrolled in public schools in kindergarten and grades 1 to 12,
inclusive, within the boundaries of the high school attendance area
for which the school district is applying for new facilities, are
enrolled in multitrack year-round schools.
   (D) At least 20 percent of the teaching stations within the
district are relocatable classrooms.
   (c) The maximum square-foot fee, charge, dedication, or other
requirement authorized by this section that may be collected in
accordance with Chapter 6 (commencing with Section 17620) of Part
10.5 of the Education Code shall be calculated by a governing board
of a school district, as follows:
   (1) The number of unhoused pupils identified in the school
facilities needs analysis shall be multiplied by the appropriate
amounts provided in subdivision (a) of Section 17072.10, plus the
state grants associated with new school construction authorized
 pursuant to Chapter 12.5 (commencing with Section 17070.10)
of   pursuant to Section 17070.98 of, and Article 7.5
(commencing with Section 17074.50) of Chapter 12.5 of  Part 10
of  ,  the Education Code. In addition, and subject to the
limitations contained therein, the number of unhoused pupils
identified in the school facility needs analysis shall be multiplied
by the appropriate amounts set forth in Sections 1859.71.1, 1859.76
and 1859.83(a) of Title 2 of the California Code of Regulations. 
This sum shall be added to the site acquisition and development cost
determined pursuant to subdivision (h). 
   (2) The full amount of local funds the governing board has
dedicated to facilities necessitated by new construction shall be
subtracted from the amount determined pursuant to paragraph (1).
Local funds include fees, charges, dedications, or other requirements
imposed on commercial or industrial construction.
   (3) The resulting amount determined pursuant to paragraph (2)
shall be divided by the projected total square footage of assessable
space of residential units anticipated to be constructed during the
next five-year period in the school district or the city or county in
which the school district is located. The estimate of the projected
total square footage shall be based on information available from the
city or county within which the residential units are anticipated to
be constructed or a market report prepared by an independent third
party.
   (d) A school district that has a common territorial jurisdiction
with a district that imposes the fee, charge, dedication, or other
requirement up to the amount calculated pursuant to this section or
Section 65995.7, may not impose a fee, charge, dedication, or other
requirement on residential construction that exceeds the limit set
forth in subdivision (b) of Section 65995 less the portion of that
amount it would be required to share pursuant to Section 17623 of the
Education Code, unless that district is eligible to impose the fee,
charge, dedication, or other requirement up to the amount calculated
pursuant to this section or Section 65995.7.
   (e) Nothing in this section is intended to limit or discourage the
joint use of school facilities or to limit the ability of a school
district to construct school facilities that exceed the amount of
funds authorized by Section 17620 of the Education Code and provided
by the state grant program, if the additional costs are funded solely
by local revenue sources other than fees, charges, dedications, or
other requirements imposed on new construction.
   (f) Except as provided in paragraph (5) of subdivision (a) of
Section 17620 of the Education Code, a fee, charge, dedication, or
other requirement authorized under this section and Section 65995.7
shall be expended solely on the school facilities identified in the
needs analysis as being attributable to projected enrollment growth
from the construction of new residential units. This subdivision does
not preclude the expenditure of a fee, charge, dedication, or other
requirement, authorized pursuant to subparagraph (C) of paragraph (1)
of subdivision (a) of Section 17620, on school facilities identified
in the needs analysis as necessary due to projected enrollment
growth attributable to the new residential units.
   (g) "Residential units" and "residences" as used in this section
and in Sections 65995.6 and 65995.7 means the development of
single-family detached housing units, single-family attached housing
units, manufactured homes and mobilehomes, as defined in subdivision
(f) of Section 17625 of the Education Code, condominiums, and
multifamily housing units, including apartments, residential hotels,
as defined in paragraph (1) of subdivision (b) of Section 50519 of
the Health and Safety Code, and stock cooperatives, as defined in
Section 1351 of the Civil Code.
   (h) Site acquisition costs shall not exceed half of the amount
determined by multiplying the land acreage determined to be necessary
under the guidelines of the State Department of Education, as
published in the "School Site Analysis and Development Handbook,"
1998-2000 editions, or their successors, by the estimated cost
determined pursuant to Section 17072.12 of the Education Code. Site
development costs shall not exceed the estimated amount that would be
funded by the State Allocation Board pursuant to its regulations
governing grants for site development costs.
  SEC. 2.  Section 65995.6 of the Government Code is amended to read:

   65995.6.  (a) The school facilities needs analysis required by
paragraph (2) of subdivision (b) of Section 65995.5 shall be
conducted by the governing board of a school district to determine
the need for new school facilities for unhoused pupils that are
attributable to projected enrollment growth from the development of
new residential units over the next five years. The school facilities
needs analysis shall project the number of unhoused elementary,
middle, and high school pupils generated by new residential units, in
each category of pupils enrolled in the district. This projection of
unhoused pupils shall be based on the historical student generation
rates of new residential units constructed during the previous 10
years that are of a similar type of unit to those anticipated to be
constructed either in the school district or the city or county in
which the school district is located, and relevant planning agency
information, such as multiphased development projects, that may
modify the historical figures. For purposes of this subdivision,
"type" means a single-family detached, single-family attached, or
multifamily unit. The existing school building capacity shall be
calculated pursuant to Article 2 (commencing with Section 17071.10)
of Chapter 12.5 of Part 10 of the Education Code. The existing school
building capacity shall be recalculated by the school district as
part of any revision of the needs analysis pursuant to subdivision
(e) of this section. If a district meets the requirements of
paragraph (3) of subdivision (b) of Section 65995.5 by having a
substantial enrollment on a multitrack year-round schedule, the
determination of whether the district has school building capacity
area shall reflect the additional capacity created by the multitrack
year-round schedule.
   (b) When determining the funds necessary to meet its facility
needs, the governing board shall do each of the following:
   (1) Identify and consider any surplus property owned by the
district that can be used as a schoolsite or that is available for
sale to finance school facilities.
   (2) Identify and consider the extent to which projected enrollment
growth may be accommodated by excess capacity in existing
facilities.
   (3) Identify and consider local sources other than fees, charges,
dedications, or other requirements imposed on residential
construction available to finance the construction or reconstruction
of school facilities needed to accommodate any growth in enrollment
attributable to the construction of new residential units.
   (c) The governing board shall adopt the school facility needs
analysis by resolution at a public hearing. The school facilities
needs analysis may not be adopted until the school facilities needs
analysis in its final form has been made available to the public for
a period of not less than 30 days during which time the school
facilities needs analysis shall be provided to the local agency
responsible for land use planning for its review and comment. Prior
to the adoption of the school facilities needs analysis, the public
shall have the opportunity to review and comment on the school
facilities needs analysis. Any member of the public may request in
writing a meeting for purposes of discussing and understanding the
school facility needs analysis. A written request for a meeting must
be received no later than 15 days in advance of the public hearing at
which the school facility needs analysis will be considered for
adoption by the governing board. The school district shall hold a
meeting as requested at least five days prior to the public hearing
to adopt the needs analysis.  The governing board shall
respond to written comments it receives regarding the school
facilities needs analysis. 
   (d) Notice of the time and place of the hearing, including the
location and procedure for viewing or requesting a copy of the
proposed school facilities needs analysis and any proposed revision
of the school facilities needs analysis, shall be published in at
least one newspaper of general circulation within the jurisdiction of
the school district that is conducting the hearing no less than 30
days prior to the hearing. If there is no paper of general
circulation, the notice shall be posted in at least three conspicuous
public places within the jurisdiction of the school district not
less than 30 days prior to the hearing. In addition to these notice
requirements, the governing board shall mail a copy of the school
facilities needs analysis and any proposed revision to the school
facilities needs analysis not less than 30 days prior to the hearing
to any person who has made a written request if the written request
was made 45 days prior to the hearing. The governing board may charge
a fee reasonably related to the cost of providing these materials to
those persons who request the school facilities needs analysis or
revision.
   (e) The school facilities needs analysis may be revised at any
time in the same manner, and the revision is subject to the same
conditions and requirements, applicable to the adoption of the school
facilities needs analysis.
   (f) A fee, charge, dedication, or other requirement in an amount
authorized by this section or Section 65995.7, shall be adopted by a
resolution of the governing board as part of the adoption or revision
of the school facilities needs analysis and may not be effective for
more than one year. Notwithstanding subdivision (a) of Section 17621
of the Education Code, or any other provision of law, the fee,
charge, dedication, or other requirement authorized by the resolution
shall take effect immediately after the adoption of the resolution.
   (g) Division 13 (commencing with Section 21000) of the Public
Resources Code may not apply to the preparation, adoption, or update
of the school facilities needs analysis, or adoption of the
resolution specified in this section.
   (h) Notice and hearing requirements other than those provided in
this section may not be applicable to the adoption or revision of a
school facilities needs analysis or the resolutions adopted pursuant
to this section.
   SEC. 3.   If the Commission on State Mandates determines that this
act contains costs mandated by the state, reimbursement to local
agencies and school districts for those costs shall be made pursuant
to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of
the Government Code.