BILL ANALYSIS Ó AB 1664 Page 1 Date of Hearing: April 30, 2014 ASSEMBLY COMMITTEE ON APPROPRIATIONS Mike Gatto, Chair AB 1664 (Hagman) - As Amended: April 22, 2014 Policy Committee: EducationVote:7-0 Urgency: No State Mandated Local Program: No Reimbursable: No SUMMARY This bill authorizes a school district selling or leasing a school site that was purchased, modernized, or improved with moneys from a state school facilities funding program (SFP), to offer to sell or lease the property to another school district, a county office of education (COE), or a governmental agency that provides child care and development services, after first offering the schoolsite for sale or lease to a charter school. FISCAL EFFECT Potential reduction in one-time SFP savings to the extent districts would have otherwise been required to return proceeds from the sale of property to the state. Any revenue returned to the State Allocation Board (SAB) is available to the SFP for other projects. COMMENTS 1)Purpose . According to the author's office, this bill is intended to prevent school districts complying with the Naylor Act from having to return state bond funds pursuant AB 308 (Hagman), Chapter 496, Statutes of 2013. 2)Background. The "Naylor Act" was established by SB 1562, Chapter 277, Statutes of 1996 with the intent to preserve open space (school playgrounds, playing fields and recreational property) during the sale or lease of property by allowing a school district to offer the space to entities such as cities and parks. This bill adds the authority for a school district to offer open-space property to a school district, COE or governmental agency that provides child care and development AB 1664 Page 2 services, prior to offering the property to a city, park or recreation district, regional park authority or a county pursuant to the Naylor Act. Charter schools currently have priority over ALL entities for access to this space. AB 308 authorizes the SAB, a 10 member board that allocates and administers the SFP and state bond funds, to establish a process whereby a school district, COE or a charter school that sells real property funded with any state bond funds to return the portion received from the state, if the funds are not used for capital outlay purposes. To date, the SAB has not created a process to recover funds pursuant to AB 308. The author is concerned that a school district complying with the Naylor Act by selling open-space property to a city, county, or park authority would be required to return the amount received from state bond funds pursuant to AB 308. 3)Opposition. The Coalition for Adequate School Housing (CASH) is opposed to the bill based on their assertion that school districts are adequately able to manage their assets under the current statute. According to CASH, "Current Education Code and Government Code provisions regarding disposition and prioritization of surplus properties by K-12 school districts are complex and can cause confusion. However, we do not believe AB 308 and the Naylor Act are in conflict, and we caution against adding to statutory complexity by making further changes." Analysis Prepared by : Misty Feusahrens / APPR. / (916) 319-2081