BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 132
                                                                  Page  1

          Date of Hearing:   August 17, 2011

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                   SB 132 (Lowenthal) - As Amended:  July 13, 2011 

          Policy Committee:                             Education Vote:6-4

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:              No

           SUMMARY  

          This bill requires the State Allocation Board (SAB), on or 
          before July 1, 2012, to review guidelines, rules, regulations, 
          procedures, and policies for the modernization of school 
          facilities to ensure they reflect state planning priorities, as 
          specified.  Specifically, this bill: 

          1)Requires the governing board of a school district to consider 
            whether a new schoolsite or an addition to an existing 
            schoolsite reflects state planning priorities.  

          2)Requires the State Department of Education (SDE), through 
            their normal course of providing assistance to districts 
            during the schoolsite property acquisition process, to ensure 
            the district is meeting state planning priorities, as 
            specified. 

          3)Requires the governor's five year infrastructure plan to 
            include information provided by SDE and SAB on the extent 
            which all of the following are consistent with state planning 
            priorities: 

             a)   Guidelines, rules, regulations, and policies/procedures 
               for the modernization of school facilities adopted by the 
               SAB.
             b)   Site selections standards developed by SDE for use by 
               districts. 
             c)   Standards developed by SDE for use by districts to 
               ensure the design and construction of school facilities are 
               educationally appropriate and promote school safety.  

           FISCAL EFFECT  








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          1)GF administrative costs of $328,000 to the Office of Planning 
            and School Construction for additional staff to analyze the 
            state's planning priorities and the existing statutes, 
            regulations, and SAB policies for the modernization program.  
            Likewise, if necessary, staff would need to conduct a 
            regulatory process to ensure policies/procedures comply with 
            the state's planning priorities.  

          2)Unknown, state school facilities bond cost pressure, likely in 
            the hundreds of thousands to low millions, if eligible uses of 
            state modernization funds are expanded to include expenditures 
            to comply with state planning priorities.  

          3)AB 127 (Nunez), Chapter 35, Statutes of 2006, authorized 
            Proposition 1D: the Kindergarten-University Public Education 
            Facilities Bond Act of 2006 for $10.416 billion. The voters 
            passed Proposition 1D on November 7, 2006. Of the $10.416 
            billion, $7.329 billion was allocated for K-12 education 
            facilities, including $3.3 billion for modernization projects. 
             As of June 2011, there are approximately $1.35 billion in 
            modernization funds available for allocation.  

           COMMENTS  

           1)Purpose  .  Existing law establishes all of the following state 
            planning priorities: 


             a)   To promote infill development and equity by 
               rehabilitating, maintaining, and improving existing 
               infrastructure. 


             b)   To protect environmental and agricultural resources by 
               protecting, preserving, and enhancing the state's most 
               valuable natural resources.


             c)   To encourage efficient development patterns by ensuring 
               that any infrastructure associated with development, other 
               than infill development, supports new development that does 
               all of the following: 










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               i)     Uses land efficiently. 


               ii)    Is built adjacent to existing developed areas to the 
                 extent consistent with the environmental priorities 
                 above.  


               iii)   Is located in an area appropriately planned for 
                 growth. 


               iv)    Is served by adequate transportation and other 
                 essential utilities and services. 


               v)     Minimizes ongoing costs to taxpayers. 


            According to the author, "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.  AB 132 will begin the process of ensuring the 
            state school facility infrastructure investment achieves the 
            state's goals of community and economic vitality and 
            environmental health."

           2)Existing law  establishes the State School Facilities Program 
            (SSFP), administered by the SAB, to provide funding primarily 
            to local education agencies (LEAs) to construct or modernize 
            education facilities. The SSFP receives funding from a variety 
            of sources, including the state GF and proceeds from the sale 
            of general obligation (G.O.) bonds.  Programs under the SSFP 
            include modernization new construction, career technical 
            education facilities, and charter school facilities. 

           3)Will this bill lead to the expanded use of state modernization 
            funds to ensure school districts are complying with the 
            state's planning priorities  ?  Current law authorizes 
            modernization funds to be used for an improvement to extend 








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            the life of, or to enhance the physical environment of, the 
            school.  Statute further specifies improvement only includes 
            the costs related to the direct physical improvement of the 
            building, including design, engineering, testing, inspection, 
            plan checking, construction management, demolition, 
            construction, the replacement of portable classrooms, etc.  
            Also, existing law prohibits grant funds from being used for 
            costs associated with acquisition and development of real 
            estate or routine maintenance and repair.  

            This bill requires the SAB, on or before July 1, 2012, to 
            review guidelines, rules, regulations, procedures, and 
            policies for the modernization of school facilities to ensure 
            they reflect state planning priorities, as specified.  It is 
            unclear if the SAB's review will lead to an expansion of the 
            use of modernization grant funds beyond existing law to 
            include compliance with the state's planning priorities.  In 
            essence, this measure provides the SAB with discretion in 
            ensuring these priorities are met and funding changes may be 
            part of this review.  The committee may wish to consider this 
            issue.  


           Analysis Prepared by  :    Kimberly Rodriguez / APPR. / (916) 
          319-2081