BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2048
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          CONCURRENCE IN SENATE AMENDMENTS
          AB 2048 (Torlakson)
          As Amended  August 19, 2010
          Majority vote
           
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          |ASSEMBLY:  |74-0 |(April 29,      |SENATE: |36-0 |(August 23,    |
          |           |     |2010)           |        |     |2010)          |
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           Original Committee Reference:    ED.

          SUMMARY  :   Prohibits the state 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 that school district.  Requires the architect in charge  
          of the project plans to determine the chargeable covered and  
          enclosed space within the perimeter of a commercial or  
          industrial structure that is subject to fees.   

           The Senate amendments  add the provision specifying that 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 OSHPD, in accordance  
          with the building standards of the office.  

           EXISTING LAW  :

          1)Authorizes, under Education Code Section 17620, the governing  
            board of any school district to levy a fee, charge,  
            dedication, or other requirement against any construction  
            within the boundaries of the district, for the purpose of  
            funding the construction or reconstruction of school  
            facilities.

          2)Specifies that the fee, charge, dedication, or other  
            requirement may be applied to the following:

             a)   New commercial and industrial construction.  Specifies  
               that the chargeable and enclose space of commercial or  
               industrial construction does not include the square footage  
               of any existing structure on the site of that construction  








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               as of the date the first building permit is issued for any  
               portion of that construction;

             b)   New residential construction and other residential  
               construction that results in increase in assessable space  
               of more than 500 square feet; and,

             c)   Location, installation or occupancy of manufactured  
               homes and mobilehomes.

          3)Specifies that the construction or reconstruction of school  
            facilities does not include regular maintenance or routine  
            repair of school buildings and facilities, deferred  
            maintenance, or the inspection, sampling, analysis,  
            encapsulation, or removal of asbestos-containing materials.

          4)Prohibits a city or county from issuing a building permit for  
            any construction absent certification by the appropriate  
            school district that any fee, charge, dedication, or other  
            requirement levied by the governing board of that school  
            district has been complied with, or of the district's  
            determination that the fee, charge, dedication, or other  
            requirement does not apply to the construction.  Requires the  
            school district to issue the certification immediately upon  
            compliance with the fee, charge, dedication, or other  
            requirement.

          5)Specifies, under Government Code Section 65995, various levels  
            of fees that may be assessed to fund school facilities and the  
            types of construction projects subject to the fees. 

          6)Specifies that "residential, commercial, or industrial  
            construction" does not include any facility used exclusively  
            for religious purposes that is thereby exempt from property  
            taxation, any facility used exclusively as a private full-time  
            day school, or any facility that is owned and occupied by one  
            or more federal, state or local agencies.

           AS PASSED BY THE ASSEMBLY  , this bill was substantially similar  
          to the version passed by the Senate.

           FISCAL EFFECT  :  According to the Senate Appropriations  
          Committee, pursuant to Senate Rule 28.8, negligible state costs.  
           









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           COMMENTS  :  SB 50 (L. Greene), Chapter 407, Statutes of 1998,  
          established the School Facility Program (SFP) which governs the  
          allocation of state education bond funds and the construction  
          and modernization of kindergarten through grade 12 school  
          facilities.  SB 50 was based on the premise that the state would  
          provide 50% of funding for the construction of schools, with the  
          remaining amount provided by local funds, including developer  
          fees.  SB 50 revamped the developer's fees laws and established  
          the current three levels of assessments.  

          SB 50 increased the residential per square footage fees from  
          $1.50 to $1.93 and required an inflation adjustment every two  
          years according to the class B construction index as determined  
          by the State Allocation Board (SAB), the ten-member body which  
          oversees the allocation and administration of state education  
          bond funds, at its January meeting every year.  The fee, also  
          known as the Level I fee, is at $2.97 per square foot for  
          residential construction and $.47 for commercial/industrial  
          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 school facilities needed to house  
          future students.  Level II is assessed based on a five-year  
          Needs Assessment and adopted by a governing board, which takes  
          into account district capacity, projection of unhoused pupils  
          resulting from new residential development, and available  
          funding to the district.  Level II is authorized when a district  
          has submitted an application for state bond funding and when a  
          district meets two of four specified conditions.  In the event  
          that state bond funds for school facilities are depleted, home  
          builders would be required to pay 100% of the per pupil grant  
          amount (that is, both the state and local share) required for  
          school facilities construction.  Currently, Level III is  
          authorized when the SAB is no longer approving apportionments  
          for new construction projects.

          Current law prohibits a city or county from issuing a building  
          permit for any construction project until the appropriate school  
          district certifies that the developer has complied with the  
          assessments.  This bill prohibits the OSHPD from issuing  
          building permits until the appropriate school district certifies  
          that the developer has complied with the assessments.

          The author states that school districts have had difficulty  
          collecting developer fees on non-public hospitals, as OSHPD, not  








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          cities and counties, issues building permits for hospital  
          projects.  According to information provided by OSHPD, the  
          agency is responsible for the enforcement of the Hospital  
          Facilities Seismic Safety Act and preempts local building  
          departments for plan review, issuance of building permits and  
          construction observation for all general acute care hospital and  
          skilled nursing facility construction in California.  OSHPD  
          reviews construction plans for new construction, alterations or  
          additions to facilities to ensure compliance with the California  
          Building Standards Code (Title 24), which regulates the  
          architectural, structural, mechanical, electrical, plumbing and  
          fire and life safety components of construction plans.  Upon  
          approval of the plans, OSHPD issues the building permits.  If  
          this bill is enacted, OSHPD would be required to verify that  
          developers have complied with school district authorized  
          assessments prior to issuing permits.

          This bill does not impose new fees; it simply provides school  
          districts with the ability to ensure compliance.  Existing law  
          authorizes school districts to assess developer's fees on all  
          residential, commercial, and industrial construction with the  
          exception of the following:

          1)Facility used exclusively for religious purposes that is also  
            exempt from property taxation.

          2)Any facility used exclusively as a private full-time day  
            school.

          3)Any facility that is owned and occupied by one or more  
            federal, state or local agencies.

          The Elk Grove Unified School District states, "Currently without  
          AB 2048, the Elk Grove Unified School District has to undertake  
          various measures to collect fees from non-public hospitals,  
          including paying our own legal counsel to attempt collection of  
          the fees, as well as seeking the assistance of our local  
          building departments to help obtain the fees.  We don't have to  
          undertake these measures for all other commercial development  
          projects because existing law provides us the assurance that our  
          fees will be paid."


           Analysis Prepared by  :    Sophia Kwong Kim / ED. / (916) 319-2087  









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