BILL ANALYSIS Ó SB 774 Page 1 REPLACE : 07/12/2011 Changes per consultant. SENATE THIRD READING SB 774 (Hancock) As Amended June 23, 2011 Majority vote SENATE VOTE :29-9 HIGHER EDUCATION 6-2 ----------------------------------------------------------------- |Ayes:|Block, Achadjian, | | | | |Brownley, Fong, Galgiani, | | | | |Lara | | | | | | | | |-----+--------------------------+-----+--------------------------| |Nays:|Donnelly, Miller | | | | | | | | ----------------------------------------------------------------- SUMMARY : Increases the maximum amount students and employees of a California Community College (CCC) district may be charged for parking services. Specifically, this bill : 1)Increases the statutory limits for parking fees CCC districts may charge as follows: a) From $40 to $50 per semester and from $20 to $25 for intersession parking services; and, b) From $30 to $35 per semester and $10 to $15 for intersession carpool parking services. 2)Authorizes CCC governing boards to increase the fee limits on parking and carpool passes annually by the same percentage increase as the Implicit Price Deflator for State and Local Government Purchases of Goods and Services. Specifies that the fees may be increased annually up to the next whole dollar increment above the existing fee limit that the calculation produces. 3)Raises the statutory limit on parking fees charged to students who receive Board of Governor Fee Waivers from $20 to $30 per semester. SB 774 Page 2 EXISTING LAW : 1)Authorizes a CCC governing board to charge students and employees parking service fees not to exceed the actual cost of providing parking services, as follows: $40 per semester and $20 per intersession for regular parking permits, $30 per semester and $15 per intersession for carpool students, and exempts Board of Governors' (BOG) Fee Waiver students from paying parking fees that exceed $20 per semester (Education Code (EC) Section 76360). 2)Authorizes a CCC governing board to charge a fee in excess of the aforementioned limits 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 CCCs (EC Section 76360). 3)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 CCCs (EC Section 76360). FISCAL EFFECT : Unknown. This bill is keyed non-fiscal by Legislative Counsel. COMMENTS : Background : 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 and facility construction and transportation services, and established maximum fee amounts CCCs could charge for parking and transportation services. In response to concerns that CCC districts were bumping up against the fee ceilings in attempts to expand transit services for students, the Legislature approved SB 82 (Hancock), Chapter 619, Statutes of 2010, to increase the maximum amount CCC districts could charge for transportation fees and established an annual inflationary adjustment to the statutory cap. This bill would similarly increase the statutory limit for parking fees and authorize an annual inflationary adjustment to the limit. SB 774 Page 3 Purpose of this bill : According to the author, current law that caps parking fees at $40 per semester has been in place for over 20 years. The current cap imposes an arbitrary and outdated ceiling on fees for parking that creates difficulty in managing local budgets amidst preexisting budgetary constraints. Thirty-four CCC districts reported drawing funding from their general funds to meet parking expenses. The law does not take into account the increased costs associated with parking services and the need to upgrade parking facilities to ensure adequate safety for students when going to and from class. This bill would enable districts to maximize the funding allocated to parking infrastructure and public safety-related improvements, in addition to course offerings and student support programs by safeguarding CCC districts' general fund. State and Local Government Implicit Price Deflator : The Implicit Price Deflator for State and Local Government Purchases of Goods and Services is an index published by the United States Department of Commerce. This measure of inflation is used to calculate increases to school district revenue limits and cost of living adjustments for CCC. It is also used by various state agencies as an objective metric for determining an annual rate of increase or decrease in fees. The proposal to tie the parking fee cap to the Implicit Price Deflator is consistent with other authorized fees for CCC, including health fees and transportation services. This method will allow for more gradual increases over time and enable CCC governing boards to better ensure that funds generated from parking fees will cover the actual costs of providing parking services to students. Prior legislation : SB 82 (Hancock), Chapter 619, Statutes of 2010, increased and established an annual inflationary adjustment to the statutory cap placed on CCC transportation fees. Analysis Prepared by : Laura Metune / HIGHER ED. / (916) 319-3960 FN: 0001356 SB 774 Page 4