BILL NUMBER: AB 1163	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Brownley

                        FEBRUARY 18, 2011

   An act to amend Section 94110 of the Education Code, relating to
the California Educational Facilities Authority.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1163, as introduced, Brownley. Education: California
Educational Facilities Authority.
   Existing law, the California Educational Facilities Authority Act,
creates the California Educational Facilities Authority, the purpose
of which is to provide institutions of higher education, including
private colleges, with additional means for specified projects. The
act defines "private college" or "private participating college" to
mean a private college that neither restricts entry on racial or
religious grounds nor requires students gaining admission to receive
instruction in the tenets of a particular faith, and that
participates with the authority in undertaking the financing and
construction or acquisition of a project.
   This bill would recast the definition of a "private college" or
"private participating college" to mean a private college that does
not restrict the admission of a student based on his or her race or
ethnicity, provided that the financing does not violate specified
constitutional provisions.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 94110 of the Education Code is amended to read:

   94110.  As used in this chapter, the following words and terms
have the following meanings, unless the context indicates or requires
another or different meaning or intent:
   (a) "Authority" means the California Educational Facilities
Authority created by this chapter or any board, body, commission,
department, or officer succeeding to the principal functions of the
authority or to whom the power conferred upon the authority by this
chapter is given by law.
   (b) "Bond" means bonds, notes, debentures, or other securities of
the authority issued pursuant to this chapter.
   (c) "Cost," as applied to a project or portion thereof financed
under this chapter, means all or any part of the cost of construction
and acquisition of lands, structures, real or personal property,
rights, rights-of-way, franchises, easements, and interests acquired
or used for a project, the cost of demolishing or removing buildings
or structures on acquired land, including the cost of acquiring lands
to which the buildings or structures may be moved, the cost of
machinery and equipment, financing charges, interest prior to,
during, and for a period after completion of, the construction as
determined by the authority, provisions for working capital, reserves
for principal and interest and for extension, enlargements,
additions, replacements, renovations and improvements, the cost of
engineering, financial and legal services, plans, specifications,
studies, surveys, estimates, administrative expenses, and other
expenses necessary or incidental to determining the feasibility of
constructing a project or incident to the construction or acquisition
or financing of a project.
   (d) "Dormitory" means a housing unit with necessary and usual
attendant and related facilities and equipment.
   (e) (1) "Educational facility" means a dormitory, dining hall,
student union, administration building, academic building, library,
laboratory, research facility, classroom, health care facility
(including for an institution of higher education that maintains and
operates a school of medicine, structures or facilities designed to
provide services as a hospital or clinic, whether the hospital or
clinic is operated directly by the institution of higher education or
by a separate nonprofit corporation, the members of which consist of
the educational institution or the members of its governing body),
faculty and staff housing, parking, maintenance, storage, or utility
facilities, and other related structures or facilities used for
student instruction, conducting research, or operating an institution
for higher education, and related facilities and equipment.
   (2) "Educational facility" does not include a facility used or to
be used for sectarian instruction or as a place for religious
worship, or a facility used or to be used primarily in connection
with a part of the program of a school or department of divinity.
   (f) "Faculty and staff housing" means a residential unit owned by
a participating college or participating nonprofit entity for use by
an individual holding a faculty appointment or a staff position at a
public university, public college, or participating college.
   (g) "Participating nonprofit entity" means an entity within the
meaning of paragraph (3) of subsection (c) of Section 501 of Title 26
of the United States Code that, pursuant to this chapter for the
purpose of owning student, faculty, or staff housing, as approved by,
and for participation with, the authority, undertakes the financing
and construction or acquisition of student, faculty, or staff
housing, on real property owned or leased by the entity, for the
benefit of a public college, public university, or participating
private college. The authority may determine any additional
qualifications of a participating nonprofit entity through
regulations or guidelines.
   (h) "Participating private college" or "participating college"
means a private college that  neither restricts entry on
racial or religious grounds nor requires students gaining admission
to receive instruction in the tenets of a particular faith, and that,
pursuant to this chapter,  participates with the authority
in undertaking the financing and construction or acquisition of a
project  and does not restrict the admission of a student based
on his or her race or ethnicity, provided that the financing does not
violate Section 5 of Article XVI of the California Constitution or
the establishment clause of the First Amendment to the Uni  
ted States Constitution  .
   (i) (1) "Private college" means an institution for higher
education other than a public college, situated within the state and
that, by virtue of law or charter, is a nonprofit private or
independent degree-granting educational institution that is
regionally accredited and empowered to provide a program of education
beyond the high school level.
   (2) For purposes of obtaining financing under this chapter,
"private college" also includes either of the following:
   (A) A nonprofit affiliate, established on or prior to January 1,
2005, of one or more private colleges, as defined in paragraph (1),
the sole or primary purpose of which is to provide administrative or
other support services to an affiliated private college or private
colleges, and that undertakes the financing of a project for the
exclusive use and benefit of one or more of the affiliated private
colleges.
   (B) A private nonprofit research organization engaged in basic
research and advanced education at the predoctoral and postdoctoral
levels through personnel situated within the state, but only if the
organization previously has borrowed the proceeds of bonds or other
obligations previously issued by the authority.
   (j) (1) "Project" means a dormitory or an educational facility,
faculty or staff housing, or any combination thereof, or any function
concerning student loans, or interests therein, as determined by the
authority.
   (2) For a participating nonprofit entity, "project" means the
construction or acquisition of student housing or faculty and staff
housing. The authority, in consultation with the top administrative
officials and the participating nonprofit entity, shall develop and
adopt regulations to ensure, to the greatest extent practicable, that
each project involving a participating nonprofit entity is used to
house students, faculty, or staff of the participating private
college, public college, or public university. The student, faculty,
or staff housing shall meet all of the following criteria:
   (A) Upon completion or acquisition of the project, the project
will be owned by a participating nonprofit entity and located on real
property owned, or leased by, that entity.
   (B) The top administrative official of the public university,
public college, or participating private college that the project is
intended to benefit, verifies the need for housing and financing
assistance in a specific area pursuant to subparagraph (D).
   (C) The project is monitored on an annual basis by the authority
to ensure that it meets the requirements of subparagraph (E) and all
other regulatory agreements entered into by the authority.
   (D) The project is located within a five-mile radius of the
boundary of a campus or satellite center of the public college,
public university, or participating private college that the project
is intended to benefit. The participating nonprofit entity may
request approval from the top official of the institution for a
project that is located outside the five-mile radius, provided that
all of the following criteria are met:
   (i) There are no available and feasible sites within the five-mile
radius.
   (ii) The project is near a mass transit destination.
   (iii) The time required to commute from campus to the mass transit
destination, as estimated by the top administrative official,
typically does not exceed 30 minutes.
   (E) (i) The project includes and maintains for 40 years a
restriction to the grant deed on the real property on which the
student or faculty and staff housing is to be located. The grant deed
shall accomplish all of the following:
   (I) Give the public college, public university, or participating
private college that the project is intended to benefit the right,
but not the obligation, to purchase the property at fair market
value.
   (II) Ensure that students, faculty, or staff of the affected
campus will have first right of refusal to all available units.
   (III) Require that, to the greatest extent feasible, at least 50
percent of student residents will meet the criteria for need-based
financial assistance, as determined by the top administrative
official of the affected campus.
   (IV) Require that all contracts for construction and renovation of
the proposed project shall be subject to, and comply with the
provisions referenced in, Section 10128 of the Public Contract Code.
   (ii) For purposes of this subparagraph, the authority, through
regulation or rule, shall define "student" and "faculty," taking into
consideration enrollment status requirements and employment status
requirements. The definitions of "student" and "faculty" may be
different for each participating campus.
   (k) "Public college" means a community college.
   (  l  ) "Public university" means any campus of the
University of California, the California State University, or the
Hastings College of the Law.
   (m) "Student housing" means a residential unit owned by a
participating nonprofit entity, and located on real property owned by
that entity, for use by an individual enrolled at a public college,
public university, or participating private college.
   (n) "Student loan" means a loan having terms and conditions
acceptable to the authority that is made to finance or refinance the
costs of attendance at a private college or a public college and that
is approved by the authority, if the loan is originated pursuant to
a program that is approved by the authority.
   (o) "Top administrative official" means the chancellor in the case
of a campus of the University of California, the dean in the case of
the Hastings College of the Law, the president in the case of a
campus of the California State University, the president in the case
of a campus of the California Community Colleges, or the president or
highest ranking official in the case of a participating private
college.