BILL ANALYSIS                                                                                                                                                                                                    






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

          BILL NO:       SB 82
          AUTHOR:        Hancock
          AMENDED:       August 16, 2010
          FISCAL COMM:   Yes            HEARING DATE:  August 26,  
          2010
          URGENCY:       No             CONSULTANT:Kathleen Chavira

           NOTE  :  This bill has been amended to replace its contents  
          and this is the first time the bill is being heard by this  
          committee.

           SUBJECT  :  Community College Transportation Fees

           KEY POLICY ISSUES
           
          Should the cap on California Community College  
          transportation fees be increased?

          Should the cap be subject to an annual inflationary  
          adjustment?

           
          SUMMARY  

          This bill increases, and requires an annual inflationary  
          adjustment to, the statutory cap placed on California  
          Community College (CCC) transportation fees.

           BACKGROUND  

          Current law authorizes California Community College (CCC)  
          districts to charge a fee to students or to students and  
          employees, subject to specified requirements, in order to  
          fund transportation services for purposes of partially or  
          fully recovering the district's transportation costs or for  
          reducing fares for services provided by municipally owned  
          transit services to these students and employees.  These  
          requirements, among others, include a favorable vote of a  
          majority of students, a pro-rata fee for part-time  
          students, optional exemption for low-income students and a  
          contract limitation of no more than 10 years.  




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          Current law prohibits the transportation fee from exceeding  
          the amount necessary to reimburse districts for  
          transportation costs/services and caps the amount which may  
          be charged for these services.  Specifically, combined  
          transportation and parking services fees cannot exceed $60  
          per semester or $30 per intersession, or the proportionate  
          equivalent for part-time enrollment.  (Education Code   
          76361 & 76361.1)

          Current law authorizes a local CCC governing board to  
          require students and employees to pay a fee for parking  
          services and caps this fee at $40 per semester and $20 per  
          intersession. (Education Code  76360)

          ANALYSIS
           
           This bill  :

          1)   Increases the statutory cap on transportation services  
               fees from $60 to $70 per semester and from $30 to $35  
               per intercession.

          2)   Requires that the statutory cap on transportation  
               services fees be increased annually by the same  
               percentage increase as the Implicit Price Deflator for  
               State and Local Government Purchases of Goods and  
               Services published by the United States Department of  
               Commerce.

          3)   Consolidates duplicative code sections on  
               transportation fees into a single code section. 

           STAFF COMMENTS  

           1)   Need for the bill  .  According to the sponsors, the  
               transportation services fee cap has been in place for  
               over a decade. When initially put into law, few  
               California Community College (CCC) districts provided  
               public transportation opportunities for students.   
               Districts that have provided for these services have  
               only been able to do so due to recent legislation that  
               expanded the ability for students to assess themselves  
               a fee for discounted transit passes. Those that have  
               programs, are seeking to expand programs, or are  
               exploring initiating programs, are limited in their  




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               ability to do so due to the outdated cap. This bill  
               ensures that districts can work with local transit  
               authorities to provide passes that are cost effective  
               for both students and the transit provider. 

           2)   Further clarification  . This bill increases the overall  
               amount which may be charged for transportation  
               services by $10 per semester and $5 per intercession.   
               The maximum amount which a district could levy would  
               be annually adjusted for inflation.  However, all  
               other existing statutory requirements regarding such a  
               fee would remain unchanged, including the requirement  
               that the actual imposition and amount of the fee be  
               subject to a favorable vote by a majority of students.  
                Additionally, while current law requires the  
               calculation of the maximum transportation services fee  
               to consider the amount of any parking fees levied by  
               the district, this bill does not change the statutory  
               cap on parking fees.

           3)   Implicit Price Deflator  .  This bill authorizes the use  
               of the Implicit Price Deflator for State and Local  
               Government Purchases of Goods to annually adjust the  
               cap on the transportation services fee for community  
               college students and employees.  This measure of  
               inflation is used to compare expenditures over a  
               period of time and is currently also used to calculate  
               increases to school district revenue limits and to  
               adjust the health fees authorized to be required of  
               CCC students (Education Code 76355). 

           4)   Prior legislation  .  

               AB 2812 (Higher Education Committee, Chapter 954,   
               Statutes of 1998), reorganized CCC parking fee  
               provisions,  authorized all CCC governing boards to  
               levy fees to fund parking  facility construction and  
               transportation services, and  established the maximum  
               fee amounts CCCs are authorized to charge for parking  
               and transportation services.  

               AB 774 (Cook, Chapter 253, Statutes of 2009), expanded  
               the flexibility granted to three CCC districts (by  
               legislation enacted in 2006 and in 2008) to charge a  
               fee to students or students and employees in order to  
               fund transportation services, if specific requirements  




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               were met, to apply to all CCC districts.
                         
           SUPPORT  

          Alameda-Contra Costa Transit District
          Butte-Glenn Community College District
          California Community College League
          California Transit Association
          Kern Community College District
          Los Angeles Community College District
          Mt. San Jacinto Community College District
          Peralta Community College District
          Rio Hondo Community College District
          San Jose-Evergreen Community College District
          West Kern Community College District

           OPPOSITION

           None received.