BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 1404
                                                                  Page  1

          Date of Hearing:   June 27, 2012

                           ASSEMBLY COMMITTEE ON EDUCATION
                                Julia Brownley, Chair
                    SB 1404 (Hancock) - As Amended:  June 19, 2012

           SENATE VOTE  :   36-2
           
          SUBJECT  :  School property:  Civic Center Act

           SUMMARY  :  Authorizes a governing board of a school district to, 
          until January 1, 2020, charge an entity for using school 
          facilities or grounds, an amount for maintenance, repair, 
          restoration, and refurbishment, proportional to the use of the 
          school facilities or grounds.  Specifically,  this bill  :   

          1)Strikes the provision specifying that a governing board of a 
            school district shall authorize the use of school facilities 
            or grounds only when an alternative location is not available. 
             

          2)Adds YMCA to the list of organizations promoting youth and 
            school activities that may use school facilities or grounds.  

          3)Revises the definition of "direct costs" to mean the 
            following:

             a)   The share of costs of supplies, utilities, janitorial 
               services, services of school district employees directly 
               associated with the administration of the Civic Center Act, 
               and salaries paid to school district employees to operate 
               and maintain school facilities or grounds; and, 

             b)   The share of the costs for maintenance, repair, 
               restoration, and refurbishment, proportional to the use of 
               the school facilities or grounds by the entity using the 
               school facilities or grounds as follows:

               i)     "School facilities" shall be limited to only 
                 nonclassroom space and "school grounds" shall include, 
                 but not be limited to, playing fields, athletic fields, 
                 track and field venues, tennis courts, and outdoor 
                 basketball courts; 
               ii)    The share of the cost for maintenance, repair, 
                 restoration and refurbishment shall not apply to:








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                  (1)       Classroom-based after school programs, 
                    including, but not limited to, tutoring programs or 
                    child care programs; and,
                  (2)       Organizations serving pupil populations during 
                    the core school day.
               iii)   Funds collected shall be deposited into a special 
                 fund that shall only be used for purposes specified in 
                 this bill.

          4)Requires the Superintendent of Public Instruction (SPI) to, by 
            December 31, 2013, develop, and the State Board of Education 
            (SBE), to adopt, regulations 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.  

          5)Sunsets on January 1, 2020, and as of that date is repealed, 
            unless a later enacted statute, that is enacted before January 
            1, 2020 deletes or extends that date.  

           EXISTING LAW  :

          1)Establishes the Civic Center Act at each public school 
            facility and grounds where school-based organizations and 
            councils, parent teacher associations, external and community 
            organizations may engage in supervised recreational activities 
            and hold meetings.  Authorizes the governing board of a school 
            district to grant the use of school facilities or grounds upon 
            the terms and conditions the governing board deems proper for 
            various purposes.  (Education Code (EC) Section 38131)

          2)Requires the governing board of a school district to authorize 
            the use of any school facilities or grounds under its control, 
            when an alternative location is not available, to nonprofit 
            organizations, and clubs or associations organized to promote 
            youth and school activities, including, but limited to:  1) 
            Girl Scouts, Boy Scouts, Camp Fire, Inc.; 2) parent-teachers' 
            associations; and 3) school-community advisory council.  
            Authorizes the governing board to charge an amount not to 
            exceed its direct costs for use of its school facilities based 
            on an adopted policy specifying which activities shall be 
            charged a fee.  (EC Section 38134)  

          3)Requires the governing board to charge an amount at least 
            equal to the district's direct costs for use of school 








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            facilities or grounds by a church or religious denomination 
            and fair rental value for entertainments or meetings where 
            admission fees are charged or contributions are solicited and 
            the net receipts are not expended for the welfare of the 
            pupils of the district or for charitable purposes.  (EC 
            Section 38134)

          4)Defines "direct costs" as those 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 facilities and grounds of 
            the district.  (EC Section 38134)  

           FISCAL EFFECT  :  According to the Senate Appropriations 
          Committee, $25,000 - $50,000 General Fund costs to the 
          California Department of Education to develop regulations and 
          potentially significant revenue to local schools, to the extent 
          they are able to charge higher fees for the use of their 
          facilities.  

           COMMENTS  :  The Civic Center Act requires school districts to 
          authorize use of school facilities or grounds to school-related 
          and community organizations for various purposes.  Existing law 
          also authorizes a school district to charge a fee for the use of 
          facilities or ground.  Governing boards are required to adopt a 
          policy specifying the type of activities that require a fee; 
          however, existing law also specify parameters, including:  1) a 
          governing board may charge an organization using the facilities 
          or grounds for youth sports league activities an amount not to 
          exceed the district's direct costs; 2) a governing board must 
          charge a religious organization or church an amount at least 
          equal to the district's direct costs for use of facilities or 
          grounds for religious service; and 3) a governing board must 
          charge fair rental value in the case of entertainments or 
          meetings where admission fees are charged or contributions are 
          solicited and the net receipts are not expended for the welfare 
          of the pupils or for charitable purposes.  

          "Direct costs" is defined as the costs of supplies, utilities, 
          janitorial services, and salaries of district employees required 
          to facilitate an organization's use of the facilities or 
          grounds.  This bill, until January 1, 2020, authorizes a school 
          district to charge a proportional amount for the maintenance, 
          repair, restoration and refurbishment for the use of 
          non-classroom space and school grounds, defined as playing 








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          fields, athletic fields, track and field venues, tennis courts, 
          and outdoor basketball courts.  This bill exempts 
          classroom-based after school programs, including, but not 
          limited to, tutoring programs or child care programs, and 
          organizations serving pupil populations during the core school 
          day from the maintenance fee.

          According to the author, current law defines "direct costs" as 
          "incremental costs to the District caused by the community 
          organization's use, but does not include any of the District's 
          costs to maintain the facilities in condition for use by the 
          public or to replace equipment, including artificial turf, trace 
          surfaces, or gym floors, that is worn out over time.  SB 1404 
          would expand the definition of "direct costs" to include each 
          user's proportionate share of the total costs to operate and 
          maintain the school district facilities being used, the 
          proportionate share of the total costs to repair and replace 
          those facilities, and costs caused by the user's use of the 
          facilities that would otherwise not be incurred.  School 
          districts' need for users to pay their fair share of these costs 
          is particularly acute with respect to artificial turf fields, 
          which are heavily used throughout the year (unlike grass 
          fields), but which must be replaced periodically."

           How will the fee be calculated  ?  According to the sponsor, the 
          Los Angeles Unified School District, a possible methodology for 
          calculating a fee is to determine an hourly cost.  The bill 
          requires the SPI to, by December 31, 2013, develop and the SBE 
          to adopt regulations to provide guidelines on how a 
          proportionate share is calculated and allowable costs.

           Exemptions  .  The bill exempts classroom-based "after school 
          programs" and references examples such as tutoring or child care 
          programs.  The term "after school programs" is commonly used 
          when referencing the After School Education and Safety Program, 
          which includes tutoring components but not child care.  Staff 
          recommends striking "after school programs" and inserting 
          "programs that operate after school hours, including, but not 
          limited to, after school programs, child care programs and 
          tutoring programs."  According to the sponsor, "organizations 
          serving pupil populations during the core school day" are 
          exempted to clarify that organizations that may be maintained by 
          the school or school district to provide instruction shall not 
          be charged a fee to provide instruction or direct a program on 
          school facilities or grounds.  Staff recommends revising this 








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          provision to "organizations retained by the school or school 
          district to provide instruction or instructional activities to 
          pupils during school hours."  

           Need for the bill  .  Maintenance costs for facilities and grounds 
          are generally covered under a district's general fund budget.  
          Supporters argue that state budget cuts have resulted in many 
          districts being unable to set aside funds to maintain or repair 
          facilities and grounds.  In 2009, the  the Legislature and 
          Governor, through the Budget Act, gave districts the flexibility 
          to use 39 categorical program funds for any general fund purpose 
          until 2014-15, including deferred maintenance funds, generally 
          used for major repair or replacement of plumbing, heating, air 
          conditioning, electrical, roofing, and floor systems, painting, 
          and other items.  A survey conducted by the Legislative 
          Analyst's Office shows that in 2010-11, over 70% of the 
          districts that responded to the survey diverted deferred 
          maintenance funds to other programs.  The challenge of 
          maintaining facilities and grounds are further exacerbated by 
          the use of facilities and grounds by non-profit organizations, 
          sports leagues, and community organizations.  This bill will 
          enable school districts to continue offering school facilities 
          and grounds for community use while being able to maintain the 
          facilities or grounds.

           Sunset date  .  The sunset date of January 1, 2020 was added to 
          the bill at the recommendation of the Senate Education 
          Committee, arguing that the fee should only be allowed 
          temporarily, during bad budget times.  

           Arguments in support  .  The Piedmont Unified School District 
          (PUSD) states, "In Piedmont and many other communities, school 
          athletic facilities are used by a wide variety of community 
          groups.  Non-school organizations use PUSD's athletic facilities 
          over 4000 hours per year, roughly the same amount as PUSD 
          athletic programs.  These facilities are heavily used and 
          expensive to maintain, restore, and refurbish.  For example, 
          PUSD's athletic complex includes a full-size running track and 
          artificial turf field.  PUSD expects to have to restore and 
          refurbish both surfaces at some point after 2015 at an estimated 
          cost of approximately $800,000.  State funding cuts have forced 
          PUSD to cut employee compensation, lay off teachers and other 
          employees, increase class sizes, and shorten the school year 
          with furloughs.  In this budget climate, PUSD has not been able 
          to set aside adequate funds to repair or refurbish its athletic 








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          facilities.  Although not a complete solution, California 
          legislators can help school districts by loosening restrictions 
          in the Civic Center Act."  

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          Los Angeles Unified School District (sponsor)
          Piedmont Unified School District
          Riverside County School Superintendents' Association
          San Diego Unified School District
          San Francisco Unified School District
           
            Opposition 
           
          None on file

           Analysis Prepared by  :    Sophia Kwong Kim / ED. / (916) 319-2087