BILL ANALYSIS                                                                                                                                                                                                    

                                                                  AB 2048
                                                                  Page  1

          Date of Hearing:   April 21, 2010

                                Felipe Fuentes, Chair

                  AB 2048 (Torlakson) - As Amended:  March 24, 2010 

          Policy Committee:                              Education  

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              No


          This bill prohibits the Office of Statewide Health Planning and  
          Development (OSHPD) from issuing a building permit for any  
          construction absent certification from the appropriate school  
          district that the builder has complied with any fee, charge,  
          dedication, or other requirement levied by the governing board  
          of the district.  

           FISCAL EFFECT  

          No direct fiscal impact to OSHPD to comply with the requirements  
          of this measure.  


           1)Purpose  .  SB 50 (Greene), Chapter 407, Statutes of 1998,  
            established the state school facilities program. This program  
            drastically altered how school facilities are constructed and  
            modernized in the state. Specifically, the program provides  
            state school construction bond funds to local education  
            agencies (LEAs) to construct school facilities. Chapter 407  
            established new per pupil construction and modernization  
            grants meant to provide 50% of the total cost of the facility  
            project; this is considered the state portion. The LEA is  
            required to provide the other 50% of the cost from local  
            revenue. Chapter 407 established a process for LEAs to assess  
            fees on developers as a source for this local revenue.   
            Existing law also prohibits a city or county from issuing a  
            building permit for any construction unless the appropriate  
            school district certifies that it has received any fees levied  
            on the developer.   


                                                                  AB 2048
                                                                  Page  2

            Current law does not allow school district governing boards to  
            assess developer fees on the following: (a) a facility used  
            exclusively for religious purposes, which is also exempt from  
            property taxes; (b) any facility used exclusively as a private  
            full-time day school; and (c) any facility that is owned and  
            occupied by one or more federal, state, or local agency.  

            OSHPD is a state agency that reviews and inspects health  
            facility construction projects.  It is responsible for  
            enforcing the California Building Standards Code as it relates  
            to health facilities construction.  Once OSHPD approves a  
            construction plan, it issues a building permit for the  
            project.  According to the author, school districts have  
            experienced difficulty collecting developer fees from  
            non-public hospitals.  The author further states, "Without  
            this enforcement school districts have no assurance that  
            commercial development fees imposed on hospitals will be  

           2)Existing law  delineates the different developer fees that LEAs  
            are able to assess for the purposes of constructing school  
            facilities.  The following table illustrates the three  
            different levels of fees that may be assessed. 

             |       |                  Existing Law                   |
             |Level  |$2.97 per sq. ft. for residential construction.  |
             |I      |$0.47 per sq. ft. for commercial/industrial      |
             |       |construction.  Assessed if the district conducts |
             |       |a justification study that establishes a         |
             |       |connection between the development within the    |
             |       |LEA's jurisdiction and assessment to pay for the |
             |       |cost of housing future students.                 |
             |Level  |Basis for assessing fees: Based on a five-yr.    |
             |II     |needs assessment of LEA capacity, projection of  |
             |       |unhoused pupils resulting from new residential   |
             |       |development.                                     |
             |       |                                                 |


                                                                  AB 2048
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             |       |Calculation of fees: Multiply the # of unhoused  |
             |       |pupils by the new construction grant plus 50% of |
             |       |the cost of site acquisition.                    |
             |Level  |LEAs may seek these fees when the State          |
             |III    |Allocation Board is no longer approving          |
             |       |construction apportionments These fees are       |
             |       |double the Level II fees.                        |

           Analysis Prepared by  :    Kimberly Rodriguez / APPR. / (916)