BILL ANALYSIS AB 2048 Page 1 Date of Hearing: April 21, 2010 ASSEMBLY COMMITTEE ON APPROPRIATIONS Felipe Fuentes, Chair AB 2048 (Torlakson) - As Amended: March 24, 2010 Policy Committee: Education Vote:8-0 Urgency: No State Mandated Local Program: No Reimbursable: No SUMMARY 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. COMMENTS 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 paid." 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 Page 3 | |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) 319-2081