BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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                                 THIRD READING


          Bill No:  AB 2048
          Author:   Torlakson (D)
          Amended:  6/21/10 in Senate
          Vote:     21

           
           SENATE EDUCATION COMMITTEE  :  6-0, 6/16/10
          AYES:  Romero, Huff, Emmerson, Hancock, Liu, Price
          NO VOTE RECORDED:  Alquist, Simitian, Wyland

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8

           ASSEMBLY FLOOR  :  74-0, 4/29/10 - See last page for vote


           SUBJECT  :    School facilities

           SOURCE :     Author


           DIGEST  :    This bill prohibits the Office of Statewide  
          Health Planning and Development 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.

           ANALYSIS  :    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  
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          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  
          inapplicable to the construction project.

          The fees, charges, or dedications authorized by 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  
          or facilities used for religious purposes, private  
          full-time day schools, and facilities owned and occupied by  
          federal, state, or local governments.

          This bill:

          1.Prohibits the Office of Statewide Health Planning and  
            Development (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.
           
          Comments

          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 provides a means  
          for ensuring compliance with current law requirements for  
          assessing developer fees on nonpublic hospitals.


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           Background

           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: 

           1.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.

          2.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:

             A.    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.

             B.    For a K-6 district, it has at least 30 percent of  
                its enrollment on a multi-track year round schedule.   
                For a high school district, it has at least 30  
                percent of its enrollment or 40 percent of the K-12  
                students within the high school attendance area, in  
                multi-track year round schedule schools.

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


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             D.    Twenty percent of the teaching stations in the  
                district are in relocatable classrooms.

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

          3.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.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

           SUPPORT  :   (Verified  6/30/10)

          California Alliance of Boys & Girls Clubs
          California School Boards Association
          Coalition for Adequate School Housing
          Elk Grove Unified School District

           ARGUMENTS IN SUPPORT  :    According to the author's office,  
          due to the omission of OSHPD in Education Code Section  
          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, creates a means of alerting districts to  
          the collection of fees to which they are entitled under  
          current law.


           ASSEMBLY FLOOR  : 
          AYES:  Adams, Ammiano, Anderson, Arambula, Beall, Bill  
            Berryhill, Tom Berryhill, Blakeslee, Block, Blumenfield,  
            Bradford, Brownley, Buchanan, Charles Calderon, Carter,  
            Chesbro, Conway, Cook, Coto, Davis, De La Torre, De Leon,  
            DeVore, Emmerson, Eng, Evans, Feuer, Fletcher, Fong,  
            Fuentes, Fuller, Furutani, Gaines, Galgiani, Garrick,  
            Gilmore, Hagman, Hall, Harkey, Hayashi, Hernandez, Hill,  

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            Huber, Huffman, Jeffries, Knight, Lieu, Logue, Ma,  
            Mendoza, Miller, Monning, Nava, Nestande, Niello,  
            Nielsen, Norby, V. Manuel Perez, Portantino, Ruskin,  
            Salas, Saldana, Silva, Skinner, Smyth, Solorio, Audra  
            Strickland, Swanson, Torlakson, Torres, Tran, Villines,  
            Yamada, John A. Perez
          NO VOTE RECORDED:  Bass, Caballero, Jones, Bonnie  
            Lowenthal, Torrico, Vacancy


          CPM:cm  8/16/10   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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