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