BILL ANALYSIS Ó
SENATE COMMITTEE ON EDUCATION
Carol Liu, Chair
2013-2014 Regular Session
BILL NO: AB 1664
AUTHOR: Hagman
AMENDED: April 22, 2014
FISCAL COMM: Yes HEARING DATE: June 18, 2014
URGENCY: No CONSULTANT:Kathleen Chavira
SUBJECT : School facilities sale or lease of real property.
SUMMARY
This bill modifies the Naylor Act to authorize a school
district to offer open-space property to a school district,
county office of education or an agency that will use the
property for child care and development services, prior to
offering the property to a city, park or recreation
district, regional park authority or a county, if the
school district had purchased, constructed, modernized, or
made improvements on the property using state bond funds,
and makes other related and conforming changes.
BACKGROUND
Current law establishes the School Facility Program (SFP)
under which the state provides general obligation bond
funding for various school construction projects.
Current law authorizes, until January 1, 2016, a school
district to deposit the proceeds from the sale of surplus
real property, together with any personal property located
on the property, purchased entirely with local funds into
the general fund of the school district and authorizes the
school district to use the proceeds for any one-time
general fund purpose. (EC § 17463.7)
Current law authorizes the State Allocation Board (SAB) to
establish a program that requires a school district, county
office of education, or charter school that sells real
property to return any state funds that were provided to
purchase the property or on which improvements were
constructed if the real property was purchased, or the
improvements were constructed or modernized on the real
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property within 10 years before the real property is sold,
and if the proceeds from the sale of the real property are
not sold to a charter school, school district, county
office of education or an agency that will use the property
exclusively for the delivery of child care and development
services. (EC § 17462.3)
Current law, commonly known as the "Naylor Act," requires a
school district to offer any or all portion of property
used for a school playground, playing field or other
outdoor recreational purposes and open space, to the
following entities in order of priority:
1) Until, July 1, 2016, a charter school.
2) Any city within which the land is located.
3) Any park or recreation district within which the land
is located.
4) Any regional park authority having jurisdiction within
the area in which the land is located.
5) Any county within which the land may be situated.
Current law requires that the cost not exceed the cost of
acquisition, adjusted by a cost of living factor, plus the
cost of any improvements made to open-space portion of the
property. Under these provisions, the entity that
purchases or leases the property is required to maintain
the property for playground, playing field, or other
outdoor recreational and open-space uses.
(EC § 17485 - § 17500)
ANALYSIS
This bill:
1) Modifies the Naylor Act to authorize a school district
to offer open-space property to a school district,
county office of education or an agency that will use
the property for child care and development services,
prior to offering the property to a city, park or
recreation district, regional park authority or a
county, if the school district had purchased,
constructed, modernized, or made improvements on the
property using state bond funds.
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2) Continues to require, under the Naylor Act, that until
July 1, 2016, a school district first offer a school
site for sale or lease to a charter school that has
submitted a written request to the district to be
notified of surplus property offered for sale or
lease, and that at the time of the offer has
projections of at least 80 units of in-district
average daily attendance for the following fiscal
year.
3) Makes a clarifying and conforming cross reference to
provisions regarding the return of state bond funds if
a county office of education, school district, or
charter school sells real property that was purchased,
constructed upon or modernized using state bond funds
within the prior 10 years.
STAFF COMMENTS
1) Need for the bill . According to the author, this bill
is intended to prevent school districts complying with
the Naylor Act from having to return state bond funds
pursuant to recently enacted legislation, AB 308
(Hagman, Chapter 496, Statutes of 2013). According to
the author, a school district complying with the
Naylor Act by selling open-space property to a city,
county, or park authority would be required, under
provisions established by AB 308, to return the amount
received from state bond funds, if the property is
sold within 10 years after receipt of state bond
funds. This bill would make conforming changes to
Naylor Act provisions within the Education Code to
authorize a school district to sell the property to
another local educational agency or a child care and
development agency, prior to offering the property to
the entities specified under the Naylor Act. With
these changes, the property could remain with an
educational institution and the school district would
not be required to return state bond funds.
2) The Naylor Act . Current law, within the Government
and Education Codes, establishes the Naylor Act for
the purpose of preserving school playground, playing
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field, or other outdoor recreational purposes and open
space land by giving other public agencies the
opportunity to purchase or lease such property.
Within the Education Code, if a charter school has not
accepted an offer to purchase or lease the schoolsite,
the Naylor Act requires a school district, prior to
selling or leasing such property, to offer to sell or
lease the portion of the schoolsite used for school
playground, playing field, or other outdoor
recreational purposes to the following entities: 1)
any city; 2) any park or recreation district; 3) any
regional park authority; and 4) any county within
which the land may be situated.
(EC Section 17489). This bill would provide an exception to
these requirements if the property in question would
be subject to the return of state bonds funds under
the provisions of AB 308 (Hagman, Statutes of 2013).
3) Is the bill necessary ? It has been argued and is
plausible that current law offers a number of
alternative lease or sale arrangements that can be
entered into, allowing school districts to be in
compliance with the provisions established by AB 308
(Hagman) without violating the provisions of the
Naylor Act. However, the provisions of the bill would
provide an additional incentive to ensure that the
open space properties purchased with education bond
funds would be maintained by educational entities, and
further ensure that state education bond funds are
used to meet school facility needs, rather than city
or county facility needs which may be unrelated to an
education purpose.
4) Other conforming and clarifying changes . Until July
1, 2016, current law requires that school districts
first offer surplus property for sale or lease to a
charter school with at least 80 units of average daily
attendance.
(EC § 17457.5). AB 308 (Hagman, Statutes of 2013)
established provisions that required the return of
state bond funds unless the real property in question
was sold to a charter school, school district, county
office of education, or an agency that would use the
property for delivery of child care and development
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services. The provisions of AB 308, as enacted, did
not provide that current law, until July 2016, extends
priority for any surplus property to a charter school.
This bill clarifies that the provisions of AB 308,
consistent with current law, require that a school
district first offer surplus property for sale or
lease to a qualifying charter school.
SUPPORT
Riverside County Superintendent of Schools
Riverside County School District Superintendents
California Charter Schools Association Advocates
OPPOSITION
Coalition for Adequate School Housing