BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      



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          |SENATE RULES COMMITTEE            |                   SB 774|
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                                 THIRD READING


          Bill No:  SB 774
          Author:   Hancock (D)
          Amended:  4/6/11
          Vote:     21

           
           SENATE EDUCATION COMMITTEE  :  8-1, 3/30/11
          AYES:  Lowenthal, Alquist, Blakeslee, Hancock, Huff, Price, 
            Simitian, Vargas
          NOES:  Runner
          NO VOTE RECORDED:  Liu, Vacancy


           SUBJECT  :    California Community Colleges:  parking fees

           SOURCE  :     Author


           DIGEST  :    This bill authorizes the governing board of a 
          community college district to increase parking services fee 
          limits charged to students and employees to a maximum of 
          $50 per semester and provides for annual increases to the 
          fee limit, as specified.

           ANALYSIS  :    Existing law authorizes the governing board of 
          a California Community College (CCC) district to charge 
          students and employees a maximum of $40 per semester and 
          $20 per intercession for regular parking permits, not to 
          exceed the actual cost of providing parking services.  
          Current law also prohibits a district from charging more 
          than $30 per semester and $15 per intercession for permits 
          issued to students who regularly carpool and specifies that 
          students who receive Board of Governors' (BOG) Fee Waivers 
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          are exempt from parking fees that exceed $20 per semester.

          Existing law authorizes the governing board of a CCC 
          district to charge a fee in excess of the $40 limit if the 
          number of full-time equivalent students per parking space 
          exceeds the statewide average and if the price of land 
          adjacent to the campus exceeds the statewide average cost 
          of land adjacent to community college campuses.

          Existing law requires revenues from parking fees to be 
          expended only for parking services or for purposes of 
          reducing the costs to students and employees using public 
          transportation to and from college.

          Existing law authorizes the governing board of a CCC 
          district to require students and employees at a campus to 
          pay a fee to partially or fully recover costs incurred by 
          the district for providing reduced public transportation 
          fares to students and employees, and specifies that the sum 
          of the fee for transportation and the fee charged for 
          parking services shall not exceed $70 per semester or $35 
          per intersession or the equivalent for part-time 
          enrollment.

          This bill:

          1.Raises the statutory limits for parking fees CCC 
            districts are allowed to charge by authorizing governing 
            boards to charge:

             A.    Up to $50 per semester and $25 per intercession 
                for parking services.

             B.    Up to $35 per semester and $15 per intercession 
                for students who certify that they regularly carpool 
                with two or more passengers in the vehicle parked at 
                the community college.

          2.Specifies that the governing board of each community 
            college district may increase the fee limits 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.

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          3.Specifies that the fees may be increased annually up to 
            the next whole dollar increment above the existing fee 
            limit the produced by the calculation in #2 above. 

          3.Increases the amount students on a BOG fee waiver may pay 
            for parking by specifying that students who receive these 
            waivers shall be exempt from parking fees that exceed $30 
            per semester.

           Comments

          Need for the Bill  .  The current cap on CCC parking fees has 
          been in place since 1988 when it was increased from $20 per 
          semester.  Parking fees are intended to cover the actual 
          cost of providing parking services including security 
          services, maintenance of parking lots and parking 
          structures, site improvements, and equipment such as 
          security cameras and parking machines.  According to a 
          recent survey conducted by the California Community College 
          Chancellor's office, a few districts charge parking fees in 
          excess of the $40 limit, while a few rural districts do not 
          require students to pay a fee for parking.  Most districts 
          that responded to the survey, however, charge more than $30 
          per semester for regular parking, and several districts are 
          at the statutory limit of $40.  Several respondents 
          indicated that the current fee limit does not generate 
          sufficient revenue to pay for all their maintenance 
          requirements causing them to supplement with general fund 
          resources, which over time could erode programs and 
          services.  This bill gives districts greater flexibility to 
          adjust parking fees to meet local needs while maintaining a 
          level of affordability for students.

           Implicit Price Deflator  .  The Implicit Price Deflator for 
          State and Local Government Purchases of Goods and Services 
          is an index published by the U.S. Department of commerce 
          that is a weighted average of the detailed price indexes 
          used in estimating constant-dollar GDP.  This measure of 
          inflation is used to calculate increases to school district 
          revenue limits and cost of living adjustments for 
          California Community Colleges.  It is also used by various 
          state agencies as an objective metric for determining an 
          annual rate of increase or decrease in fees.

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          The proposal to tie the parking fee cap to the Implicit 
          Price Deflator is consistent with the authorized fees for 
          the community colleges, including health fees and 
          transportation services.  This method will allow for more 
          gradual increases over time and enable governing boards to 
          better ensure that funds generated from parking fees will 
          cover the actual costs of providing parking services to 
          students.

           Related and Prior Legislation

           SB 82 (Hancock), Chapter 619, Statutes of 2010, increased 
          and established an annual inflationary adjustment to the 
          statutory cap placed on California community college 
          transportation fees.  Passed the Senate with a vote of 32-3 
          on August 27, 2010.

          AB 774 (Cook), Chapter 253, Statutes of 2009, authorized 
          the Riverside Community College District to charge a fee to 
          fund transportation services, as specified.  Passed the 
          Senate with a vote of 38-0 on August 27, 2009.

          AB 1980 (Swanson), Chapter 145, Statutes of 2008, 
          authorized the Peralta Community College District to charge 
          a fee to fund transportation services, as specified.  
          Passed the Senate with a vote of 36-2 on July 2, 2008.

          AB 1968 (Leslie), Chapter 560, Statutes of 2006, authorized 
          the Los Rios Community College District and the Rio Hondo 
          Community College District to charge a fee for using 
          transportation services, as specified.  Passed the Senate 
          with a vote of 40-0 on August 31, 2006.

          AB 2812 (Assembly Higher Education Committee), Chapter 954, 
          Statutes of 1998, reorganized community college parking fee 
          provisions, authorized community college governing boards 
          to levy fees to fund parking facility construction and 
          transportation services, and established maximum fee 
          amounts that districts are authorized to charge for parking 
          and transportation services.  Passed the Senate with a vote 
          of 37-0 on August 19, 1998.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  No   

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          Local:  No

           SUPPORT  :   (Verified  4/12/11)

          Community College League
          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



          CPM:cm  4/12/11   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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