BILL ANALYSIS Ó Senate Appropriations Committee Fiscal Summary Senator Christine Kehoe, Chair SB 1404 (Hancock) - School Property: Civic Center Act. Amended: April 26, 2012 Policy Vote: Education 7-1 Urgency: No Mandate: No Hearing Date: May 24, 2012 Consultant: Jacqueline Wong-Hernandez SUSPENSE FILE. AS PROPOSED TO BE AMENDED. Bill Summary: SB 1404 expands the authority of a school district governing board to charge fees for the use of its school facilities and grounds under the Civic Center Act. This bill also required the state board of education (SBE) to develop guidelines related to the fee authority, as specified. Fiscal Impact: Regulations: The California Department of Education (CDE) estimates that it will cost $25,000-$50,000 General Fund to develop regulations to implement the provisions of this bill. School district authority: Potentially significant revenue for local schools, to the extent they are able to charge higher fees for the use of their facilities. Background: The Civic Center Act, in existing law, declares that at every public school facility and grounds is a civic center where the governing board of the school district may grant various organizations, clubs, and associations, some of which are specified, the opportunity to engage in supervised recreation and meet and discuss subjects pertaining to the interests of the citizens of the communities in which they reside. The school district governing board is authorized to set terms for this use of public school facilities and grounds, and some conditions are specified in statute. The governing board is authorized to charge an amount not to exceed its direct costs for use of its facilities by another entity. Direct costs are specified in existing law as costs of supplies, utilities, janitorial services, services of any other district employees, and salaries paid school district employees necessitated by the organization's use of the school district's SB 1404 (Hancock) Page 1 facilities/grounds. In the case of functions for which admission is charged or contributions are solicited, and the receipts are not expended for the welfare of the district's students, districts are required to charge a fee equal to fair rental value. (Education Code § 38130- 38139) Proposed Law: This bill would, until January 1, 2020, expand the definition of direct costs that a school district governing board may charge an entity for the use of school facilities or grounds to include a share of the operating and maintenance costs proportional to the use of school facilities or grounds by the entity using those facilities. This bill would require the SBE to develop "guidelines" to be used by a school district in determining the proportionate share and the specific allowable costs that a school district may include as direct costs for the use of its school facilities or grounds. Staff Comments: This bill gives local school district governing boards greater authority to charge fees for the use of their facilities under the Civic Center Act, by expanding the definition of a "direct cost" which they can include in their rental rates. This will likely result in additional local revenue, and will vary by school. This bill also requires the SBE, staffed by CDE employees, to develop "guidelines" for implementing this new fee authority. The CDE has opined that the less formal guidelines would not be sufficient and, instead, regulations would need to be developed to implement this bill. The CDE estimates that it will cost $50,000-$75,000 General Fund to develop those regulations. Proposed Author Amendments: The proposed amendments would require the CDE to create regulations, rather than guidelines.