BILL ANALYSIS Ó SB 132 Page 1 Date of Hearing: July 6, 2011 ASSEMBLY COMMITTEE ON EDUCATION Julia Brownley, Chair SB 132 (Lowenthal) - As Amended: May 11, 2011 SENATE VOTE : 26-11 SUBJECT : School facilities: state planning priorities SUMMARY : Requires the State Allocation Board (SAB), the California Department of Education (CDE), and local governing boards to consider state planning priorities in the construction and modernization of school facilities. Specifically, this bill : 1)Finds and declares the following: a) State planning priorities are intended to promote equity, strengthen the economy, protect the environment, and promote public health and safety. b) The quality and location of schools affect local land use and transportation patterns, community vitality, economic development and pupil outcomes. c) The state makes a significant investment in the construction and modernization of school facilities and to ensure that this investment is consistent with state infrastructure goals, it is essential that the state school facility construction investment reflect state planning priorities. 2)Requires, on or before July 1, 2012, the SAB to review the guidelines, rules, regulations, procedures, and policies for the construction and modernization of school facilities to ensure that they reflect the state planning priorities and requires the SAB to revise them as necessary. 3)Requires the governing board of a school district to consider whether a new schoolsite or addition reflects state planning priorities. 4)Requires the following standards developed by the CDE to reflect state planning priorities: a) Selection of schoolsites. SB 132 Page 2 b) Design and construction of school facilities that are educationally and appropriate and promote school safety. 5)Requires the state's five-year infrastructure plan to include information, to be provided to the Governor by the CDE and the SAB, on the extent to which all of the following are consistent with state planning priorities: a) Guidelines, rules, regulations, procedures, and policies for the construction and modernization of school facilities adopted by the SAB. b) Site selection standards developed by the CDE for use in the selection of schoolsites. c) Standards developed by the CDE for use by school districts to ensure that the design and construction of school facilities are educationally appropriate and promote school safety. EXISTING LAW : 1)Requires, under the Leroy F. Greene School Facilities Act of 1998, the SAB to allocate to applicant school districts prescribed per-unhoused-pupil state funding for construction and modernization of school facilities, including hardship funding, and supplemental funding for site development and acquisition. (Education Code (EC) 17070.35) 2)Prohibits the SAB from apportioning funds to any school district unless the applicant school district has certified to the SAB that it has obtained the written approval of the CDE that the site selection and the building plans and specifications comply with the standards adopted by the CDE. (EC 17070.50) 3)Requires a governing board of a school district to, prior to commencing the acquisition of real property for a new schoolsite or an addition to an existing schoolsite, evaluate the property at a public hearing using the site selection standards established by the CDE. Authorizes the governing board to direct the district's advisory committee to evaluate the property pursuant to those site selection standards and to SB 132 Page 3 report its findings to the governing board at the public hearing. (EC 17211) 4)Requires the CDE to establish standards for use by school districts in the selection of schoolsites and standards for the design and construction of school facilities that are educationally appropriate and promote school safety. Requires the CDE to advise a governing board on the acquisition of new schoolsites and review plans and specifications for school buildings. (EC 17251) 5)Specifies state planning priorities, which are intended to promote equity, strengthen the economy, protect the environment, and promote public health and safety in the state, including in urban, suburban, and rural communities. (Government Code (GC) Section 65041.1) 6)Requires the Governor to, in conjunction with the Governor's proposed budget, annually submit a proposed five-year infrastructure plan to the Legislature. Requires the plan to identify new, rehabilitated, modernized, improved, or renovated infrastructure requested by state agencies for the five years, including infrastructure needs for kindergarten through grade 12 public schools. (GC 13102) FISCAL EFFECT : According to the Senate Appropriations Committee, the requirements for the SAB and the CDE to revise rules and regulations and standards are within the normal functions of the SAB and the CDE and could be absorbed within existing resources. To the extent that the SAB and the CDE change the rules, regulations, and standards, there could be potential costs to local school districts and cost pressure to state bond funds. COMMENTS : State planning priorities . Existing law requires the Governor to prepare, regularly review, and revise a comprehensive State Environmental Goals and Policy Report. The Report is required to contain an overview of state growth and development and a statement of approved state environmental goals and objectives looking 20 to 30 years ahead, and a description of new and revised state policies, programs and other actions of the executive and legislative branches required to implement statewide environmental goals. Existing law also requires any revision to the Report to provide goals that are consistent with state planning priorities, which are intended to SB 132 Page 4 promote equity, strengthen the economy, protect the environment, and promote public health and safety in the state, as follows: To promote infill development and equity by rehabilitating, maintaining, and improving existing infrastructure that supports infill development and appropriate reuse and redevelopment of previously developed, underutilized land that is presently served by transit, streets, water, sewer, and other essential services, particularly in underserved areas, and to preserving cultural and historic resources. To protect environmental and agricultural resources by protecting, preserving, and enhancing the state's most valuable natural resources, including working landscapes such as farm, range, and forest lands, natural lands such as wetlands, watersheds, wildlife habitats, and other wildlands, recreation lands such as parks, trails, greenbelts, and other open space, and landscapes with locally unique features and areas identified by the state as deserving special protection. To encourage efficient development patterns by ensuring that any infrastructure associated with development, other than infill development, supports new development that does the following: o Uses land efficiently. o Is built adjacent to existing developed areas. o Is located in an area appropriately planned for growth. o Is served by adequate transportation and other essential utilities and services. o Minimizes ongoing costs to taxpayers. This bill requires the process of constructing new school facilities and modernizing school facilities to reflect the state planning priorities. Specifically, this bill requires local governing boards to consider whether a new schoolsite or addition to an existing schoosite reflects the state planning priorities and requires the CDE to ensure that the standards for site selection and school facility design and construction reflect state planning priorities. This bill also requires the SAB to review the guidelines, rules, regulations, procedures, and policies of the SFP to ensure that they reflect the state SB 132 Page 5 planning priorities. School Facility Program (SFP) . The construction and rehabilitation of public kindergarten through grade 12 (K-12) and higher education facilities are funded by a combination of state and local general obligation bonds, private funds, local assessments, and in some instances, lease revenue bonds. SB 50 (L. Greene), Chapter 407, Statutes of 1998, established the SFP, which governs the allocation of state education bond funds and the construction and modernization of K-12 school facilities. Since the inception of the SFP in 1998, voters have approved $35.4 billion in state G.O. bonds for K-12 schools. The last education bond on the statewide ballot was Proposition 1D, which was passed by voters on the November 2006 ballot, and provided $10.416 billion for K-12 and higher education facilities. The SAB, a ten member board, is responsible for the allocation of bond funds and developing regulations for the administration of the SFP. In order to be eligible for state education bond funds, the SFP requires a local educational agency to evaluate a potential schoolsite at a local governing board meeting and to receive approval from the CDE to ensure that the selected site and school specifications are safe and meet the school's education plan. The CDE is required to provide advice to school districts and develop standards by which school districts select the location for new schoolsites and design facilities that ensures that facilities are supportive environments for the instructional program and are safe for students and staff. Planning and siting schoolsites start at the local level. Therefore, it is appropriate to for a local governing board to consider whether a potential schoolsite meets state planning priorities. This bill does not require a local governing board to ensure that a schoolsite meets state planning priorities; it simply requires a local governing board to consider the priorities. This bill requires the standards developed by CDE on siting new schools and the standards for the design and construction of school facilities to reflect the state planning priorities. The bill, however, does not require the CDE to consider whether the location of potential schoolsites are consistent with state planning priorities. Staff recommends requiring the CDE to consider state planning priorities in its review of potential SB 132 Page 6 schoolsites. The SAB is a ten-member body charged with allocating state education bond funds and administering the SFP. The regulations establish parameters for funding as specified by the SFP statutes. It is unclear how the state planning priorities apply to the SAB regulations, guidelines, rules, procedures and policies, particularly for new construction of schools. Would school districts be prohibited from siting a school in a particular location because it does not meet the state planning priorities? If CDE has approved a site, would that site go through another level of review by the SAB? The author believes that the area of regulations that will have the greatest effect through the consideration of state planning priorities are funds for the modernization of schools. According to the author's office, regulations for modernization projects are restrictive in the uses of the funds and prevent existing projects from being updated to reflect modern educational needs. As such, staff recommends striking the requirement for the SAB to ensure that regulations for new construction projects reflect the state planning priorities, and specifying that any changes to the regulations, guidelines, and policies for modernization projects must be in accordance with existing law. The Committee may wish to consider whether amending the statutes governing authorizes uses of modernization funds may be more effective than changing regulations that must stay within the parameters of existing law. Five-year infrastructure plan . Existing law requires the Governor to, in conjunction with the Governor's proposed budget, annually submit a proposed five-year infrastructure plan to the Legislature. The five-year infrastructure plan is intended to identify new, rehabilitated, modernized, improved, or renovated infrastructure requested by state agencies for five years, including infrastructure needs for K-12 public schools to accommodate increased enrollment, class size reduction, and school modernization. This bill requires the five-year infrastructure plan to include information provided by the CDE and the SAB on the extent to which the guidelines, rules, regulations, procedures, and policies for the construction and modernization of school facilities, and the standards for selection of schoolsites and design of school facilities are consistent with the state planning priorities. Staff recommends striking new construction to conform to the previous suggested amendment. SB 132 Page 7 Arguments in Support . The author states, "High quality schools serve as the cornerstone of sustainable, healthy communities. School quality and location affects local land use and transportation patterns, community vitality, economic development and, most importantly, student outcomes. Unfortunately, schools are typically absent from sustainability-oriented infrastructure and policy discussions. Many state school facility policies are not structured to support broader sustainable development objectives. In 2002, the state created the State Planning Priorities to promote infill development and equity, to protect environmental and agricultural resources and to encourage efficient development patterns. This bill will reflect the state planning priorities in the state's school facility construction investment." The Fresno Unified School District states, "Unfortunately, schools are typically not included in sustainability-oriented infrastructure and policy discussions. While Fresno Unified School District has made it a policy that its facilities should fit harmoniously into the community, many state school facility policies are not structured to support broader sustainable development objectives such as protecting the environmental and agricultural resources and encouraging efficient development patterns. SB 132 will begin the process of ensuring school facility infrastructure investments achieve the goals of community and economic vitality and environmental health." Arguments in Opposition . The California Building Industry Association opposes the bill and states, "SB 132 is a misplaced measure that imposes new environmental regulations that are in direct conflict with the purpose of the school facilities program: to build schools where there is demonstrated need for new classrooms. Furthermore, SB 132 mandates that the entire body of regulations underpinning the state school facility program (SB 50) be forced to integrate a set of land-use priorities that are already appropriately applied through SB 375 and local land use planning. SB 132 conflates two separate state objectives that are completely unrelated. "Existing law allows for complaints to be filed against school districts for noncompliance with site selection standards. SB 132 opens the door for private parties to mount legal challenges against a school district by creating a new cause of action: noncompliance with the state planning priorities." SB 132 Page 8 REGISTERED SUPPORT / OPPOSITION : Support Advancement Project American Federation of State, County and Municipal Employees California Advocacy Committee of the United States Green Building Council Fresno Unified School District State Superintendent of Public Instruction Tom Torlakson Opposition California Building Industry Association Analysis Prepared by : Sophia Kwong Kim / ED. / (916) 319-2087