BILL ANALYSIS ------------------------------------------------------------ |SENATE RULES COMMITTEE | AB 2048| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ THIRD READING Bill No: AB 2048 Author: Torlakson (D) Amended: 8/19/10 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. Senate Floor Amendments of 8/19/10 (1) delete the authority of the Office of Statewide Health Planning to enter into a contractual agreement with a school district to collect construction fees on their behalf and to be reimbursed for related administrative costs, and (2) clarify that the CONTINUED AB 2048 Page 2 requirement that the architect of record determine the amount of chargeable space applies only for the purposes of determining construction fees to be paid by developers to school districts. 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 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.Deletes the authority of the OSHPD to enter into a contractual agreement with a school district to collect construction fees on their behalf and to be reimbursed for related administrative costs 3.Prohibits application of these provisions to the OSHPD unless, in accordance with existing law requirements, the AB 2048 Page 3 agency has been notified of the adoption of, or increase in, fees or other requirements. 4.Clarifies that the requirement that the architect of record determine the amount of chargeable space applies only for the purposes of determining construction fees to be paid by developers to school districts. 5.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. 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 AB 2048 Page 4 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. 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) (Unable to reverify at time of writing) 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 AB 2048 Page 5 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, 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 8/22/10 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END ****