BILL ANALYSIS                                                                                                                                                                                                    






                         SENATE COMMITTEE ON EDUCATION
                              Gloria Romero, Chair
                           2009-2010 Regular Session
                                        

          BILL NO:       AB 2048
          AUTHOR:        Torlakson
          AMENDED:       March 24, 2010
          FISCAL COMM:   Yes            HEARING DATE:  June 16, 2010
          URGENCY:       No             CONSULTANT:Kathleen Chavira

           SUBJECT  :  School Facilities Construction Fees
          
           KEY POLICY ISSUE  

          Should the issuance of a building permit by the Office of  
          Statewide Health Planning and Development be contingent  
          upon compliance with existing law requirements regarding  
          the payment of fees, charges or other school district  
          governing board requirements?

          
           SUMMARY  

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

           BACKGROUND  

          Current law authorizes the governing board of any school  
          district to levy a fee, charge, dedication, or other  
          requirement against any new commercial and industrial  
          construction, new residential construction, as specified,  
          and against the location, installation or occupancy of  
          manufactured or mobile homes within the boundaries of the  
          district, for the purpose of funding the construction or  
          reconstruction of school facilities.  In addition, a city  
          or county is prohibited from issuing a building permit for  
          any construction absent certification by the appropriate  
          school district that; 1) the fee, charge, dedication, or  
          other requirement levied has been complied with or, 2) the  
          fee, charge, dedication, or other requirement is  




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          inapplicable to the construction project.
          (Education Code 17620)

          The fees, charges, or dedications authorized in the  
          Education Code are subject to specified limitations.  These  
          include prescribed calculation of fee amounts and their  
          annual adjustment, and specified exemptions from these fees  
          for facilities used for religious purposes, private  
          full-time day schools, and facilities owned and occupied by  
          federal, state, or local governments. 
          (Government Code 65995)

          SB 50 (Green, Chapter 407, Statutes of 1998) in addition to  
          establishing the current School Facility Program, revised  
          developer fee procedures for school facility purposes.  SB  
          50 authorized three different levels of developer fees to  
          be assessed under specified conditions:

              Level 1 - A district is authorized to levy per square  
               footage fees of $1.93 per square foot for residential  
               construction and $0.31 for commercial or   industrial  
               construction to be adjusted for inflation every two  
               years according to the class B construction index as  
               determined by the SAB at its annual January meeting.   
               This fee level is currently at $2.97 per square foot  
               for residential construction, and is assessed if the  
               district conducts a Justification Study that  
               establishes the connection between the development  
               coming into the district and the assessment of fees to  
               pay for the cost of the facilities needed to house  
               future students.  

              Level 2 - A district may levy Level 2 fees if it has  
               conducted a needs analysis, as specified, has SAB  
               approval of eligibility for state funding, and meets  
               two of the following four conditions:

               o         The district has attempted to pass a local  
                    bond at least once during the last four years and  
                    received approval by the voters of 50 percent  
                    plus one.

               o         For a K-6 district, it has at least 30  
                    percent of its enrollment on a multi-track year  
                    round schedule (MTYRE).  For a high school  
                    district, it has at least 30 percent of its  




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                    enrollment or 40 percent of the K-12 students  
                    within the high school attendance area, in MTYRE  
                    schools.

               o         The district has issued debt or incurred  
                    obligations for capital outlay equal to 15% of  
                    the district's local bonding capacity for  
                    indebtedness approved by voters before November  
                    4, or 30% of capacity for indebtedness approved  
                    by voters after November 4, 1998.

               o         Twenty percent of the teaching stations in  
                    the district are in re-locatable classrooms.

               The fee may not exceed 50% of construction and site  
               acquisition and development costs.

              Level 3 - A district is authorized to seek 100 percent  
               of school facilities costs if the state has exhausted  
               state school bond funds and the SAB is no longer  
               approving apportionments for new construction  
               projects. 
               (GC  65995.5 - 65995.6)



           ANALYSIS
           
           This bill  :

          1)   Prohibits the OSHPD from issuing a building permit for  
               any construction absent certification by an  
               appropriate school district of compliance with any  
               fee, charge, dedication, or other requirement levied  
               by the governing board of that school district.

          2)   Prohibits application of these provisions to the OSHPD  
               unless, in accordance with existing law requirements,  
               the agency has been notified of the adoption of, or  
               increase in, fees or other requirements.

          3)   Makes other technical and conforming changes.

           STAFF COMMENTS  

           1)   Need for the bill  . According to the author, due to the  




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               omission of OSHPD in Education Code 17620, the  
               lengths to which school districts have to go to levy  
               and collect school impact fees on non-public hospitals  
               vary widely, with some having to engage legal counsel  
               to levy and collect these fees. Because OSHPD is not  
               explicitly prohibited from issuing a building permit,  
               school districts are not assured that school impact  
               fees will be paid by developers who construct  
               non-public hospitals.  This bill, by prohibiting the  
               issuance of a building permit, would create a means of  
               alerting districts to the collection of fees to which  
               they are entitled under current law.  

           2)   OSHPD  .  The Facilities Development Division (FDD) of  
               the OSHPD reviews and inspects health facility  
               construction projects. FDD enforces building  
               standards, per the California Building Standards Code,  
               as they relate to health facilities construction and  
               is responsible for overseeing all aspects of general  
               acute care hospital, psychiatric hospital, skilled  
               nursing home and intermediate care facility  
               construction in California, including the development  
               of administrative regulations and building standards  
               for these facilities.  

          3)   Is this a new fee  ?  No.  As reflected in the  
               background of this analysis, current law authorizes  
               the collection of fees for school facility  
               construction purposes for any commercial, industrial,  
               or residential construction within a school district's  
               boundaries.  This bill would provide a means for  
               ensuring compliance with current law requirements for  
               assessing developer fees on nonpublic hospitals.  

          4)   Conforming technical amendments  .  Current law (GC   
               65995) provides for a specified fee per square foot  
               for "chargeable covered and enclosed space" within the  
               perimeter of a commercial or industrial structure, and  
               specifically requires the city or county building  
               department issuing the building permit to make this  
               determination.  The bill does not currently make  
               provision for such determination for structures for  
               which OSHPD issues building permits. 

               Staff recommends the bill be amended to make the  
               following parallel addition within GC  65995 for  




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               buildings approved by OSHPD; "For any commercial or  
               industrial construction required to be approved by the  
               Office of Statewide Health Planning and Development,  
               the determination of the chargeable covered and  
               enclosed space within the perimeter of a commercial or  
               industrial structure shall be made by the project  
               Architect of Record submitting the project plans and  
               specifications to the Office of Statewide Health  
               Planning and Development. 
          
               Staff further recommends the bill be amended to  
               include the following additional conforming changes:

               On page 3 line 35, and on page 4 line 15, and on page  
               4 line 17, add "or the Office of Statewide Health  
               Planning and Development" after "county."

               Add and amend EC  17621(c) to add the Office of  
               Statewide Health Planning and Development to the  
               entities to receive specified information upon the  
               adoption of, or increase in, a fee, charge, or  
               dedication or other requirement.

           SUPPORT  

          Coalition for Adequate School Housing
          Elk Grove Unified School District

           OPPOSITION

           None received.